It is actually just that simple (well almost). Just remove the source reference (highlighted) and add all the code from the external file into the tags:
Code:
<script type="text/javascript" src="thumbnailviewer2.js" defer="defer">
/***********************************************
* Image Thumbnail Viewer II script- © Dynamic Drive DHTML code library (www.dynamicdrive.com)
* Visit http://www.dynamicDrive.com for hundreds of DHTML scripts
* This notice must stay intact for legal use
***********************************************/
Script code goes here
</script>
Make sure you keep the credit notice there at the top.
Good luck!
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