The code you're referring to is this, I assume:
<?php if ($HTTP_POST_VARS['action']) { ?>
<!-- Code to process Uploaded File and Display -->
<!-- The HTML to display the results -->
?>
<BR><A HREF="<?php echo $PHP_SELF ?>">Back</A>
</FONT></P>
</BODY>
</HTML>
<?php } else { ?>
<HTML>
<HEAD>
<TITLE>File Upload</TITLE>
</HEAD>
<BODY BGCOLOR="WHITE" TEXT="BLACK">
<P><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="+1">File
Upload</FONT><BR><BR>
If your browser is upload-enabled, you will see "Browse" (Netscape,
Internet Explorer), or "..." (Opera) buttons below. Use them to
select files to upload, then click the "Upload" button. After the
files have been uploaded, you will see a results screen.<BR>
<FORM METHOD="POST" ENCTYPE="multipart/form-data"
ACTION="<?php echo $PHP_SELF;?>">
<INPUT TYPE="HIDDEN" NAME="MAX_FILE_SIZE" VALUE="800000">
<INPUT TYPE="HIDDEN" NAME="action" VALUE="1">
File 1: <INPUT TYPE="FILE" NAME="file1" SIZE="30"><BR><BR>
<INPUT TYPE="SUBMIT" VALUE="Upload">
</FORM>
</FONT></P>
</BODY>
</HTML>
<?php } ?>
The very first line is the start of an "if" statement. It also has the "?>" at the end of the line to denote that that is the end of the PHP code.
So, if $HTTP_POST_VARS["action"] is true, then display the first part of the HTML code, which is the hyperlink to go back. Else, which is the line you're looking at, display the uploading form.
Sometimes it's easier to code your PHP this way - it can be less confusing to look at, instead of placing your HTML code within echo of print/printf statements within PHP.
Look at the following link - it may help in explaining this style of coding.
http://www.php.net/manual/en/language.basic-syntax.php