Enabling Script Localization ? What does it do?

Hi everyone,

Does anyone has any ideas on the following?

Under Script Manager >> Enable Script Localization

Indicates whether the ScriptManager control renders localized versions of script files. Applies only for frontend

Does this means that if this is Enabled? All the JS files that Sitefinity uses for its Webresources (eg: jquery/ajax and others) will be localize in the server? Where are the localize files?

Script Manager > Script References

Taking the MicrosoftAjax as an example. It can be seem that the path is ajax.microsoft.com/.../MicrosoftAjax.js. Does this means that Sitefinity will grab from MS server and combine them to generate the webresources? I notice this for the KendoUI libraries also.