Auto-Refresh on File System Changes and slow netwrk browsing

[Mesh]

The configuration option "Auto-Refresh on File System Changes / In network locations as well" makes a huge difference in the speed that file lists are loaded when browsing network drives.

I was wondering if anyone could give me a little more detail on how this setting works (for example, what is considered file system changes?), and why it slows down network browsing so much.