Not related to windows at all.
Does not require updates at all.
Can run whatever you like in Windows.
You will want to disable it when partitioning, formatting, or installing an OS, then re-enable it.
It write-protects the boot sector, and may intercept other low level interrupts such as FORMAT (INT 13h and the like from memory ?
). In a text only environment it will beep/buzz and ask "Yes / No" for permission when changing boot sector. In a GUI environment that lacks its own BIOS (Windows can remap whatever it wants over F000:0000 - FFFF:FFFF) it may disallow writes to the boot sector.
Generally a good thing to have enabled. Except when performing certain (rare) tasks. Running NTFS under a WinNT/2K/XP env and decent Anti-Virus protection you wouldn't really need it on however.
Google "VSAFE.COM" or "VSAFE.EXE" and you'll see the historical timeframe (DOS / Win 3.xx) and concepts sets such features used. Quite interesting stuff if IT / Computing is your thing. Tomes of Knowledge dare I say.