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After having the same question I did some digging. It seems that it serves two purposes, the first being that it is used to map those "Special" buttons on your keyboard to a specific function. By special I mean the buttons not found on your standard keyboard (mine happen to be my multimedia buttons)
The second function...actually its more like function 1.5 because it's really the same thing as the last function. This function allows you to rewrite what was previously scripted for those buttons. A example of this is making the internet icon now open up a game instead of the internet.
Edit 12.15.10
Specifically those "special buttons" are the Function (Fn) + Blue Keys. For example, if the F3 button has a wireless symbol in blue...
--Then pressing Fn + F3 with LaunchManager.exe enabled, a screen will pop up giving you options to turn on Wi-Fi and Bluetooth (if you have it).
--With LaunchManger.exe disabled, pressing Fn + F3 will simply turn your wireless capabilities on and off (and give you no option for BlueTooth)
For full functionality of an Acer machine, it is best left enabled.
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