Drupal 6 Hook l() link image

I am trying to get my head around the new l() function in drupal 6, l($text, $path, $options = array())
It's in the api documentation at: http://api.drupal.org/api/function/l/6


$img = l($img, $link, array('html'=>TRUE, 'attributes'=>array('target'=>_blank)));


A little explanation about the terms:
Query: the part after the ? in the url (x=1&y=two etc.)
Fragment: the part after the # refering to a named id inside the document

http://api.drupal.org/api/function/l/6