Is there any way that I can create a new image that is somehow a link? Or is there anyway that I can give this .jpg image some dynamic features like mouseovers or links, etc... But all done with just the access to my ftp and not the other sites?
No, you have to settle for just chaing the image.
I'm in a similar situation, and I just display a picture saying something along the lines of "This image cannot be displayed here. Please visit **** for more info."