Official Explanation
"Internet Explorer allows scripts to programmatically
open, resize, and change the position windows of various types. The Window boundaries security feature restricts popup windows and prohibits scripts from displaying
windows in which the title and status bars are not visible to the user or
obfuscate other Windows' title and status bars.
If you enable this policy setting, happen windows and other
restrictions apply for Windows Explorer and Internet Explorer processes.
If you disable this policy setting, scripts can continue to
create popup windows and windows that obfuscate other windows.
If you do not configure this policy setting, popup windows
and other restrictions apply for Windows Explorer and Internet Explorer
processes."
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