If you have access to the SkS Authors forum, which I believe you do, you can read a discussion about Alley's GISP-2 Greeland ice core data here:
http://www.skepticalscience.com/thread.php?t=320&r=23
To make a long story short, it's just representative of Greeland temps, not global or northern hemisphere (NH), and although it's the most up-to-date ice core record from Greeland, it ends around 1850. There is of course instrumental temperature data from Greenland as well:
http://data.giss.nasa.gov/cgi-bin/gistemp/findstation.py?lat=61.2&lon=-48.2&datatype=gistemp&data_set=1
You are correct that the reference should be to Alley (2000). There is no Alley (2004).
http://www.geosc.psu.edu/people/faculty/personalpages/ralley/index.html
These data should not be compared. The others shown (Moberg, Esper, and Mann) are NH temperature reconstructions (and contrary to the figure, do not show the MWP as warm as today). They're graphed here:
http://www.ncdc.noaa.gov/paleo/globalwarming/medieval.html
And Moberg is here:
http://www.skepticalscience.com/Do-critics-of-the-hockey-stick-realise-what-theyre-arguing-for.html
http://www.ncdc.noaa.gov/paleo/globalwarming/images/moberg-2005-large.jpg
The figure in question conveniently leaves off the instrumental temperature record. Proxy data usually ends in early to mid 20th century, so all the figure is showing is that the MWP was roughly as warm as 1900-1950, which is at least a half degree cooler than today. Moberg even includes the instrumental record in his paper on Figure 2b:
http://coast.gkss.de/staff/storch/pdf/moberg.nature.0502.pdf
To answer your final question, if you're trying to determine which is the most accurate temperature reconstruction, you can't compare a Greeland reconstruction to NH reconstructions, as was done in the figure you linked. Comparing Moberg to Mann, for example, would be valid. Like the spaghetti graph:
http://www.ncdc.noaa.gov/paleo/globalwarming/medieval.html
I also wish deniers would get over their obsession with Loehle, whose paper failed peer review, had to be completely revised with assistance from a statistician, at which point it showed today about a half degree warmer than the MWP, and only used 18 proxy records. The only reason deniers like it is that it ends in 1935 and doesn't include instrumental data, so it looks like the MWP is as hot as today, and particularly because pre-statistical revision the MWP looked hotter than "today". But there is no reason whatsoever to reference Loehle when there are a dozen reconstructions available which did pass peer-review. But you can see Loehle's revised paper superimposed on the "spaghetti graph" here:
http://farm3.static.flickr.com/2666/3914214320_261cba1cf2_o.png
As you can see, it's quite similar to all other reconstructions. Except Loehle's is clearly flawed. For example, his has the MWP peaking in 800 AD as opposed to 1000 AD. See here:
http://tamino.wordpress.com/2010/09/28/vindication/
*edit* don't mind jim, I think he's just here for comic relief. Honestly I can't even figure out what he's babbling about. I thought we were talking about ice cores and temperature records, but he's talking about glaciers and tree rings and plant stomata.
Stomata, by the way, are used as an atmospheric CO2 proxy, not a temperature proxy, so they have nothing whatsoever to do with this question. And there's a reason ice core records are the preferred CO2 record - they're a direct measurement via trapped air, whereas stomata are an indirect proxy which can be influenced by a number of factors. But of course deniers like jim prefer stomata because they show a larger atmospheric CO2 variability, precisely because they're influenced by a number of other factors.
http://www.skepticalscience.com/Plant-stomata-and-CO2-levels.html
Of course none of this has anything to do with the question you asked, but I have a hard time letting deniers get away with making incorrect statements.