It's a nifty little box; I use it myself. It is a bit different in concept from commercial boxes in that it doesn't focus on reproducing the original guitar tone 1:1 (although you can pretty much do that, too) but offers some variation. In other words it transforms your soundcard output into something like "virtual" guitar. Hence the volume and tone controls. The "balls" knob controls the impedance of your virtual guitar pickup; your tone becomes fatter and louder as you increase the impedance. Obviously it works best when you used a bright guitar such as a Strat or Tele, which you can fatten up quite a bit. If your original guitar is a Les Paul or distortion axe, you can't make it sustantially brighter.
It's also pretty cool for running all kinds of signals through a guitar amp; I've used it on vocals quite a bit.