The very simplest measures are going to be RMS-error based approaches, for example:
These probably gel with your notions of distance measures, but their results are really only meaningful if you've got two images that are very close already, like if you're looking at how well a particular compression scheme preserved the original image. Also, the same result from either comparison can mean a lot of different things, depending on what kind of artifacts there are (take a look at the paper I cite below for some example photos of RMS/PSNR can be misleading).
Beyond these, there's a whole field of research devoted to image similarity. I'm no expert, but here are a few pointers:
A lot of work has gone into approaches using dimensionality reduction (PCA, SVD, eigenvalue analysis, etc) to pick out the principal components of the image and compare them across different images.
Other approaches (particularly medical imaging) use segmentation techniques to pick out important parts of images, then they compare the images based on what's found
Still others have tried to devise similarity measures that get around some of the flaws of RMS error and PSNR. There was a pretty cool paper on the spatial domain structural similarity (SSIM) measure, which tries to mimic peoples' perceptions of image error instead of direct, mathematical notions of error. The same guys did an improved translation/rotation-invariant version using wavelet analysis in this paper on WSSIM.
It looks like TinEye uses feature vectors with values for lots of attributes to do their comparison. If you hunt around on their site, you eventually get to the Ideé Labs page, and their FAQ has some (but not too many) specifics on the algorithm:
Q: How does visual search work?
A: Idée’s visual search technology uses sophisticated algorithms to analyze hundreds of image attributes such as colour, shape, texture, luminosity, complexity, objects, and regions.These attributes form a compact digital signature that describes the appearance of each image, and these signatures are calculated by and indexed by our software. When performing a visual search, these signatures are quickly compared by our search engine to return visually similar results.
This is by no means exhaustive (it's just a handful of techniques I've encountered in the course of my own research), but if you google for technical papers or look through proceedings of recent conferences on image processing, you're bound to find more methods for this stuff. It's not a solved problem, but hopefully these pointers will give you an idea of what's involved.
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