Hi,
It relates to alpha channels. Do a search for "premultiplied alpha" and you'll get lots of information. The first three Google results cover the basics, although in a wordy way. I would suggest having a browse until you find something which makes sense to you.
Here's a video to check out:
http://vimeo.com/11064139I didn't watch the whole thing but he seems to cover the basics well.
Unpremultiplying basically takes a premultiplied image and converts it to an image with a straight alpha channel. You would only want to do that if you know the image is premultiplied.
Regards,
Jo