Understanding photostream for a dummie

Can someone please tell me if my understanding is correct re My Photostream?
1.  I can take photos with any digital camera or iphone camera.
2.  If my Photostream settings are set to "On" and "Automatically Download", any photos I upload into iPhoto will appear on my iphone and Macs AND will become part of the iPhoto library.
3.  If I do not use the setting "Automatically Download" then the photos I take will be removed from the Photostream AND iphoto on my Macs and iphone?
4.  Photostream is NOT for storage, but for syncing.
5.  Automatically downloaded photos from Photostream will be stored on Camera Roll and in iPhoto on my Macs.
Thanks for the patience on this issue. 

Hi,
So you have at least Updated to 10.6.8 according to your specs.
This will mean iChat 5 which in turn means we are talking about an AIM (Valid Login types) or Jabber including Google buddy list. (possibly multiple Buddy lists)
Lets take AIM first.
In this context we are talking about any Screen Name that is Valid with the AIM servers.
This could be a MobileMe name, an @Mac.com ending one or an AIM name itself.
This will display an Icon for any Buddy that has a camera. (Or has it Enabled)
A Buddy logged in to AIM Express fro example will not be able to Audio Chat or Video and will not show a Video (or Audio) icon.
If their Camera is a plug in one and is not Plugged in they will nto show the icon.
They could have set it to be "Disabled"
Jabber and in particular GoogleTalk Buddies.
iChat will only Video to other buddies who are using iChat.
Google run a Jabber Server for GoogleTalk
iChat will not video to anyone logged in to the Google Web Pages and using the Chat option there (iGoogle or the Gmail Web page to my knowledge)
As well as Standalone Jabber Apps on PCs and Macs there is a standalone PC app called GoogleTalk.
iChat cannot Vidoe chat to these either.
This is because Jabber apps use a process called Jingle to Connect Video Chats and the Library for this is not included in iChat  (On top of that the Google Version of Jingle is also not that compatible with other Jabber apps).
These Buddies will not show Video or Audio icons.
In Short
Other apps use different Protocols to iChat when doing Video and Audio chat and iChat cannot connect those types of Chats to those Buddies
8:36 PM      Tuesday; August 2, 2011
Please, if posting Logs, do not post any Log info after the line "Binary Images for iChat"
 G4/1GhzDual MDD (Leopard 10.5.8)
 MacBookPro 2Gb( 10.6.8)
 Mac OS X (10.6.8),
"Limit the Logs to the Bits above Binary Images."  No, Seriously

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    Yvan KOENIG (VALLAURIS, France) vendredi 19 août 2011 22:15:39
    iMac 21”5, i7, 2.8 GHz, 4 Gbytes, 1 Tbytes, mac OS X 10.6.8 and 10.7.0
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    Yvan KOENIG (VALLAURIS, France) mardi 23 août 2011 11:24:09
    iMac 21”5, i7, 2.8 GHz, 4 Gbytes, 1 Tbytes, mac OS X 10.6.8 and 10.7.0
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