I was thinking about powering my usb hub from a 5v line of my power supply. The hub requires 4 amps at 5 volts. I couldn't think of any issues with this but I wanted to check to be sure.
Yes you could do this, and it should work fine (assuming you get the wiring round the right way, not like I do sometimes

hehe)
To answer the other questions, if you have a passive hub (draws its power from the usb port) you do not get the full 500ma delivered to each port on the hub, you get slightly less and this is enough to stop some devices working (usb hdd, dsl modems, etc)
Providing additional power through an external power source to an inlet jack as is available on self powered hubs you provide the full 500ma to each port and do not suffer the same problems.
Not so much a big a deal these days but it is handy, a few years back I think VIA had a chipset that if you tried to draw the full 500ma direct from the port the USB ports on the machine shutdown and would not start working again until you reboot.