This FAQ is missing information about the "auto-linkification". Granted, most people who know what a URL is find out about it on their own, but for those who don't, this FAQ makes it look more complicated than necessary.
I also think this FAQ is a little overloaded with unnecessary information about images. Do we really need to mention that you can enclose an <img> tag with an <a> tag? In particular, I think the "border" attribute on the <img> tag is such a minor detail that I think we can safely leave it out.
So, here's a suggested rewrite.
Edit: Adaptions to comments made since first posted.
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