In the past, file transfers are nightmare for Linux users who uses Gaim (the previous name before it changed to pidgin). When somebody wanted to transfer file via Yahoo protocol in Gaim, the recipients that uses Gaim under Linux will crash due to unsupported feature.
With the release of Pidgin 2.4.0, the developer has added supports for Yahoo Messenger 7.0+ file transfer, meaning that you can send/receive files from/to your friends. This morning, i had received an image from one of the Indonesian Linux Forum, saying that he couldn't access the forum (which i have fixed it) and it was transfered successfully when i'm using Pidgin 2.4.0 (i build it myself, since it's not yet included in Slackware-Current).
If you use Pidgin daily, then i guest you should upgrade to 2.4.0 version to get this nice feature.