I am attempting to copy a yahoo site for a freind who's
about to shut theirs down (plaidorchid.com) so they can keep
a copy for the future.

The problem I'm having, after using your suggested "yahoo
fix" is that it pulls down the pictures from the first level
yet if you click on the links from the downloaded website
the lower levels are all back to the wierd links like the
original website, pulling pictures from the yimg servers. 
Was there a setting i missed that allowed you to avoid this
isssue?