Dan231,
I didn't mention this as an option as it is not supported across nodes, but I will answer you questions on it.
The "Passcode" is the extension number of the Hotdesk User. Their actual phone would have a completely different extension when the user is logged out. When they press the Hotdesking button and out in their extension it comes up as that user.
As for the Local and Remote it is referring to the IP Connection of the phone. What Hershel has is a single node, 1 Mitel 5000, that his Hotdesk Extension is setup on and one of their phones is on the same network as the phone system. The other two phones are at remote locations and have to be set up as remote phones and therefore use the Remote IP Connection, which most likely uses the G.729 Codec instead of the G.711 Codec.
Thanks,
TE