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Hotspots can only trigger a rollover. If you want an image to swap out, it will have to be sliced.
I've been using hotspots for links to other pages too. Does it matter if you use a hotspot or a slice for a link?
By the way, what is the purpose of a hotspot if a slice does everything the hotspot can do and more?
Either can be used for linking. Hotspots won't slice up your file, slices will. So if you need to optimize that interactive object separately it will have to be sliced.
Hotspots are also use for image maps, and for acting as a trigger for disjointed rollovers
You can add a hotspot "on top" of a slice. For example, a large slice might hold a "pop up" window. A hotspot can be placed on top of the slice, to link back to a previous page, creating what appears to be a "close" button for the window.
You should never overlap slices though because the export gets very messy.