I'm not quite sure what this code in a .htaccess file does order deny,allow deny from all allow from localhost 127.0.0.1 Code (markup): I think it's supposed to stop external sources from writing to a directory. Would it still allow uploads by users? eg, for avatars Would it still allow scripts on the server to save backups in that directory? Will it stop or help to block other people from exploiting a 777 directory?
It only allows localhost. If you have this on your pc, it means that only you, the person that is physically on the machine, can access that directory. It has nothing to do with uploading or 777 directories.