When I link to pages within my own site, I don't prefix them with "http://www.drivingnt.com/" but I remember reading somewhere that there's an advantage in doing this, something to do with search engines.
Is that correct?

Other things have much more weight for search engine ranking than that. It won't help much doing it that way.

Thanks Tom.
Prefixing like that makes it harder for me to test my site locally, anyway. So I'll leave things as they are.

You may have read something about external links, possibly. For example, linking to

www.external-site.com

may cause the browser to look for

http://www.mysite.com/www.external-site.com

which you did not mean. You can make sure the browser links correctly to the external site by using "http://" at the beginning of the url like this

http://www.external-site.com

For internal site links, this shouldn't have an effect on search engines.

Thanks.
My memory is a bit vague about this but I think carey's comment might have been "it".

I think it is much better to link relatively, because you dont have to call a whole web address to go from page to page thus making it faster. (Granted not by much though).