It reformats the SD card. This, though not a new technique, is very effective in that it uses a Linux Swap partition instead of a file that you create. The prog simply mounts and unmounts a Linux Swap partition. Also, it'll let you place skins on the SD b/c there is another partition that is a linux partition that allows one a 'continued' space for, lets say, ezxlocal or ezx_user. One could then create ln (links) b/w directories, allowing us to have a ton of skins if we choose.
Just thought that I'd shed some more light on the topic, from what I know.
I'm so cool, I had the E6 before the E2 launched! Wait. Never mind...