It only applies to some games. FFIII is one of them I think. It is a simple start feature that is only availiable on japanese routers, but instead of removing it for the us version, nintendo just hid the button towards the top left corner.
Look it up on youtube for more info.
Also, it does work on dsi and dsiXL, but you have to get to the settings through a game, not through the dsi's system settings.
Wheatly: Umm... False. Im going to have to go with False, although to be quite honest, I might have heard that one before.