Ranking Images

I have been reading a lot about using images to generate traffic. This is not a new topic but was recently called to my attention with a new WSO from Peter Garity (that I would like to get -- wink, wink).

The idea is to take your images and create a separate page for them. You have a relevant title and H1 tags, keywords and caption near the image, etc.

You also make sure it is named properly and you do a few things to make Google think it is unique; watermark it, change size, put some sharpness on it, etc. The more info the better. You can do this very easily in an image batch processor like irfan view.

I was following a thread of a friend of mine and he says he gets a lot of traffic to his site this way. But, and here is the big but (no not you Kloe) he will do this for 10,000+ images.

Clearly it will not work to bring traffic to your site for everything. But there are a lot of places this can work.

Every place I look they say you must create a separate page for the image. That is the best technique (yeah even Matt Cutts). Here is the question(s):

1. Is anyone doing this?
2. Is it working for them?
3. By separate page do you think a separate post would fill the bill, does it have to be a static page (really the same thing when you think in terms of dynamically created content) or do you think they mean it should be an HTML page on a regular site?

Love to have some input, opinions.