It disables windows Aero but I haven't seen it effect the game in anyway.
I'm guessing Aero uses some direct X API calls and that's why they say direct X is disabled, so I would guess that any apps that make any "aero like" direct x API calls would not work. Fortunately this game and all my others have not been effected by this. (BF3, MWF3, Crisis 2, Skyrim and all the other usual top charting games)
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