Leonid wrote in chapter iv of his book : "... Module, Block and With. These constructs are explained in detail in Mathematica Book and Mathematica Help, so I will say just a few words about them here. ..."
From what I have read ( been able to find ) I am still in the dark. For packaged functions I ( simply ) use Module, because it works and I know the construct. It may not be the best choice though. It is not entirely clear to me ( from the documentation ) when, where or why to use With ( or Block ).