CSS reset - What exactly does it do?

I found this reset.css file inside a jquery image slider demo, but it was never included in the main index.html file. what is is suppose to do, and more importantly, where do you put it? Do you put it before any referenced stylesheets()?

Here is the code inside reset.css

/* CSS reset */
body,div,dl,dt,dd,ul,ol,li,h1,h2,h3,h4,h5,h6,pre,form,fieldset,input,textarea,p,blockquote,th,td { 
    margin:0;
    padding:0;
}
html,body {
    margin:0;
    padding:0;
}
table {
    border-collapse:collapse;
    border-spacing:0;
}
fieldset,img { 
    border:0;
}
input{
    border:1px solid #b0b0b0;
    padding:3px 5px 4px;
    color:#979797;
    width:190px;
}
address,caption,cite,code,dfn,th,var {
    font-style:normal;
    font-weight:normal;
}
ol,ul {
    list-style:none;
}
caption,th {
    text-align:left;
}
h1,h2,h3,h4,h5,h6 {
    font-size:100%;
    font-weight:normal;
}
q:before,q:after {
    content:'';
}
abbr,acronym { border:0;
}