This Effect transforms your image into an old dirty black and white photograph or movie picture frame.
You can change the dirtiness of the image (hair and dust scattered all over the thing).
The Vertical scratches gives the image the look of being taken from an old movie film.
You can check the Sprockets check box to draw sprocket holes along the side of the image
You can check the Film processing errors check box to give the image that "idiot chemist was drunk when he processed the film" look.
You can also change the "tint" of the film, maybe to a light greyish yellow for example, to increase the aged look.
If you do not check Film processing errors then the black and white image appearance can be set by the using the Advanced Selection dialog. box.
Switching to high image quality (IQ icon. 
in toolbar) has a noticeable effect on the image when there is lots of hair and dust on it. It looks more realistically hairy and dusty.
TIP: To make the image look as if it is a single frame from an old movie film put Vertical scratches at some non-zero value and enable Sprockets.