VSS option basically takes a 'point in time' snap shot of the contents of a drive.
It can be usefull if you have users that regularly use the SHIFT+DEL to remove data from their mailbox, as this can 'potentially' be restored from a Shadow Copy.
VSS only copies the changed data, so is basically like a recylce bin for the recycle bin. If your doing Brick level backups over night, then VSS can be used to roll the IS forward to the last point in time a VSS that was taken, so in theory giving better data protection
Because VSS only stores changed data, they cannot be totally relied upon. If you fry your File System, they are useless! plus it only works on NTFS.
Hope this helps. If you want more info, the Google for VSS, or Volume Shadow Copy, and you will find a gazilion results.
Dominic