Mixture.
It doesn't do anything. Essentially, it's a collection of shortcuts in one place. It's not a "GodMode", some prannick added that to create FUD and nor is it something hidden. The ability to do this is a standard part of Windows and is nothing more than a convenience feature. The cool thing about it is that it gathers together many shortcuts which are otherwise buried behind several mouse clicks - if you can remember where they are!
You can also get exactly the same functionality in Vista and Win 7 simply by typing what you are looking for into the search bar on the Start button.
You could call the folder minionmode.{ED7BA470-8E54-465E-825C-99712043E01C} and it would still work.
Cheers