What's that mean? Well, it means it can allow Flash to work where it isn't supported, such as on the iPad. Here's how it works:
It runs entirely in the browser, reads in SWF binaries, unzips them (in native JS), extracts images and embedded audio and turns them in to base64 encoded data:uris, then stitches the vector graphics back together as animated SVG.
It's impressive stuff! You can check out a Homestar Runner demo on their site, and it runs beautifully.