Can someone please outline the use of this method? I would like to employ it, but unless I fully understand its intentions I am scared to do it.

What is the appropriate situation to employ this? What does it exactly do? Is it a routine, regular thing that should be done, or does it fix problems permanently?

I was in sport mode in my 4.8is, and it literally stayed at 4k rpm for 10 seconds without shifting (i wasn't paying attention to speed or gear selection). Will this reset solve this problem?