Thanks, I get the idea about the difference between a combination and a permutation, and have heard the example about the lock before, but I don't understand it in the context of the formula:
for example say we have 10 pictures. If we want to hang 3 on the wall, there are

ways to do so. But I don't get what

gives us.
Is it the number of unique sets of three we can pick from the 10 pictures? I can see how it would be less in this case since some permutations would give the same set of pictures (just in a differet order), but why does this mean we divide by r! ?