OK, now for the non-math, Poker for Dummies side of things... I usually think of fold equity in terms of the size of my stack. The smaller my stack is the less fold equity it possesses. If the stack gets so small in relation to the blinds (like in NG's example from Hollywood Park), then you're fold equity is down to zero and it's correct for someone to call you with nearly ATC. So, obviously, you want to avoid situations where your stack size gets to the point where it has little to no fold equity.
This is why it's important to read/learn/understand the zone and M concepts in HOH. NG, I'd highly recommend that you pick-up HOH and go through those sections as Action Dan does a lot better job explaining those concepts than I could here.
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