The tech allows developers to better compress files, and rearranges data in the most efficient way possible. It also offers the ability to install data onto the Memory Stick, for quicker loads on UMD-based games. Already, major PSP games have taken advantage of the tech, including Persona 3 Portable, Soulcalibur: Broken Destiny, and Valkyria Chronicles 2.
So, how will players be able to identify PSP games that take advantage of this technology? One way is to look for the "Criware" logo on the box. It's likely you've seen their logo load before a game -- and now you know what they do.