It means that variable is passed by reference. When you do this:
CODE
function test($myvar)
{
$myvar = $myvar + 5;
return $myvar;
}
$variable = 2;
test($variable);
Then what is happening is that when the function is called, PHP copies the contents of $variable into a new variable called $myvar. So by doing the above, you now have 2 copies of the contents. You can't modify the *original* $variable in the function, only the copy, $myvar.
When passing by reference, instead of making a copy of the variable, you make a reference to the original.
One way to think of it is like shortcuts on Windows. You have one copy of the program file, but you can create shortcuts to it. The shortcut isn't the program itself, but a reference to the program.
See
http://www.php.net/references for more info and examples. My explanation is only a simple description.