TL,
This is a localized version of RemoteApp, where RemoteApp programs are programs that are accessed remotely through Terminal Services and appear as if they are running on the end user's local computer. Instead of being presented to the user in the desktop of the remote terminal server, or in this case, localized VM, the RemoteApp program is integrated with the client's desktop, running in its own resizable window with its own entry in the taskbar
You'll gain a much better understanding by reading the technical documents here,
http://technet.microsoft.com/en-us/library/cc753844(WS.10).aspx
Think of how XP Mode works, only better! ... and this most def pokes a sharp stick into the eyes of those saying there is nothing new in Windows 7, or that it is just Vista SP3.
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