Hi can someone that uses Fotalia explain the extended licence to me ? Is it if people want to use it for tshirts etc ?

Yes, t-shits, mugs and other products.  I get more of them from fotolia than any other site.

The Extended RF license expands the rights and privileges of the normal royalty free license to buyers while also providing more profit to photographers. This license allows a buyer to resell the image on any product, on any media, such as t-shirts, posters, coffee mugs, calendars, templates, etc, on a non exclusive basis.

http://blog.fotolia.com/uk/news/fotolia/extended_rf_license.html

Thanks