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.
You can place URLs (Internet addresses) directly into your entries, and they will automatically become links. For this to work, the URL must begin with "http://" or "https://". (You can turn this off for individual entries as explained in http://www.livejournal.com/support/faqbrowse.bml?faqid=26.)
Additionally, it is possible to use HTML tags to create links to other pages or websites. Here is an example:
<a href="http://www.example.com/">My Homepage</a>
This will create a link with the text "My Homepage" which, upon being clicked, will lead to http://www.example.com/.
Since the journals of other users are located at http://www.livejournal.com/users/exampleusername/ (replacing "exampleusername" with the username of the user), you can link to another journal by using the following HTML code:
<a href="http://www.livejournal.com/users/exampleusername">My best friend's journal</a>
Everything between the two tags (the opening tag and the closing tag) will become a clickable link. It is also possible to place an image between the tags to make a clickable image. How to add an image is described in http://www.livejournal.com/support/faqbrowse.bml?faqid=6. For example:
<a href="http://www.livejournal.com/users/exampleusername"><img src="http://www.example.com/example.jpg" width="x" height="y" border="0" /></a>
In this example code, you have to replace "http://www.example.com/example.jpg" with the URL of the image you wish to use and "x" and "y" with its width and height. You can also change the border="0" option to border="1" or any other number to create a border around the image. [ remove this? ] For a detailed explanation of this <img> tag, see http://www.livejournal.com/support/faqbrowse.bml?faqid=6. Please notice that any image you use must be stored on a webhost that allows remote loading; see http://www.livejournal.com/support/faqbrowse.bml?faqid=130 for more information about this.
There are special LiveJournal-specific tags and URLs that allow you to create links to various LiveJournal pages or journals. These tags are described at http://www.livejournal.com/support/faqbrowse.bml?faqid=75.