This policy setting controls whether 2007 Office applications can poll Office servers to retrieve lists of published links.
If you enable this policy setting, 2007 Office applications cannot poll an Office server for published links.
If you disable or do not configure this policy setting, users of 2007 Office applications can see and use links to Microsoft Office SharePoint Server sites from those applications. You can configure published links to Office applications during initial deployment, and can add or change links as part of regular operations. These links appear on the My SharePoint Sites tab of the Open, Save, and Save As dialog boxes when opening and saving documents from these applications. Links can be targeted so that they only appear to users who are members of particular audiences.
Note - This policy setting applies to Microsoft Office SharePoint Server specifically. It does not apply to Windows SharePoint Services (WSS).