CSS reset - What exactly does it do

Question

This reset.css file was hidden inside a jQuery image slider demo, but the index.html page never contained it. What exactly should it do, and more importantly, where should it go? Does it come before any stylesheets() references?

The code for reset.css is shown below.

/* 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;
}