It notifies you when someone makes a reply. So, if you are talking and want a response, you don't have to constantly check back everytime. In your "UserCP" it will show you all the threads that have recent replies if you are subscribed to them.
In your UserCP you can choose to subscribe to any thread you reply in. I use "No email notification" because i hate getting e-mails. It should be under "Edit Options" on the left side.
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