This is good for people who have only limited webspace for their Loudblog installation: Simply set a hyperlink to an audio file which is located somewhere on the web. The link will appear on the website (playable with the flash-player, if it’s an MP3), and is attached as an enclosure with the podcast feed.
The Loudblog developer is strictly against content/traffic stealing. But sometimes it is useful and legal to link to a remote web location. Maybe the user has another webspace in use, with a higher traffic limit. Or he publishes some kind of podcasting-hub. Anyway: Please, don’t abuse this feature!