Well, quite possibly you're not doing anything technically wrong and it's just ADE being quirky again, especially if it's not obeying the id="frontispiece.png"/"frontispiece" stuff in Section003 and the # fragment identifier in the TOC matches.
Because it really does look like the ThreePress validation tool would be complaining about the original corresponding id="frontispiece.png" not being found if it's linked from the TOC but you didn't have it somewhere in your text.
Though perhaps it's caught on some completely different error like an unclosed tag or something else which just happens to be in the vicinity of your hotlinking code.
Anyway, good luck and hope it all works out for you.
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