I believe that just controls how the object is textured, some properties of it, etc:
Quote: "0-DBV1 legacy behaviour
1-DBPro : DBPRO default behaviour
2-Leave states alone to keep material/diffuse effects
3-Leave states alone to keep material/texture effects
4-Ensure object blends texture and diffuse at stage zero
5-Leave states alone to keep multi-material effects"
It also says:
Quote: "Be aware that when you load an object that has associated textures, you are handing over texture management to the engine which will attempt to save texture memory by re-using textures previously loaded from the same filename. To take over texture management, use LOAD IMAGE and TEXTURE OBJECT commands."