simply connects your wireless adapter to the strongest available radio signal. It's a blunt instrument if you like, and can be effective if there's only one wireless connection available. You'll do no harm by trying it.
Did you install the Belkin software before plugging in the wireless adapter, or afterwards?
If you download the Belkin package you want the 32bit version if you're running a standard version of Windows XP. The other version is for 64bit Windows installations.