1. “Credit me. IN the information below the picture if uploaded here on DeviantArt.com, ON the picture itself if uploaded on any other site than DeviantArt.com.”
So, this means what it says. If you upload anything here on Deviantart, you don’t have to write the credits on the picture. It’s enough to just mention them in the info below the picture.
But when uploading on any other site than Deviantart, the credits should be on the picture itself.
Exceptions can be made. I totally understand if you don’t want to “ruin” the picture with text if you’ve created a real masterpiece, and in that case it is okay to write the credits below the picture - If you ask me first! Just out of politeness…

2. “Send me a link to the finished picture. Always do this. On this site or on any other – ALWAYS send the link! (Yes, this means that you’ll need a Deviantart-account, or ask a friend to send me the link for you – as long as the link gets sent! This goes for everyone, INCLUDING all of the SIM/RPG players.)”
Not much to add there, right? you don't have o do it the exact minute you upload the pic, but when it's been a month and still no link it starts getting a bit annoying...

3. “Do not – under any circumstances whatsoever – repost or redistribute the original photo anywhere. You may NOT use this picture in its original form. It must be used as a reference, in digital art or somehow be altered digitally first.”
This means that you can NOT copy a photo and upload on Photobucket – not even for the purpose of linking it anywhere. If you wish to send the link to someone, then link directly to this site. Nor can you create your own stock collection there. Save it on your computer, but not on the internet.
Nor can you copy the picture and use as a picture of your character on games without having digitally altered it or just used it as a reference first. So no copy&ost! I support art and creativity – not ripping and reposting.
And last, do not alter the stock and offer it as stock yourself! Understand?