the #replacement technique using Ajax calls the name of the page using the pagename after the #
so you have a file called ajaxcontent.html and you want to load the html from that file into a secion of your webpage, or even replace the entire body content, your ajax link can look like normal-link.html#ajaxcontent and the ajax will get the name after the # and add the default extension you specify in your script to the end, eg , .html or .php or even appending the #name to a dynamic variable like page.php?content=ajaxcontent then it fetches that html file and loads it into the div.
You can see a basic example script here.
http://darksat.x47.net/index.php?topic=1147.0This is esentially used to make search engine friendly ajax urls with working back buttons.
What this framework seems to be doing is creating something similar for flash.