I looks like it is creating an array of images found in the page.
I am guessing that the function is in a .js file and that may cache the images for faster page loading when a user clicks a link that takes them to other pages on the same site that reuse the same images.
This makes it a bit more readable
function MM_preloadImages() {
var d = document;
if (d.images){
if(!d.MM_p) {
d.MM_p = new Array();
}
var i, j = d.MM_p.length, a = MM_preloadImages.arguments;
for(i=0; i<a.length; i++) {
if (a[i].indexOf("#") != 0) {
d.MM_p[j] = new Image;
d.MM_p[j++].src = a[i];
}
}
}
}
Should note that the "indexOf" needs to be defined somewhere, as not all browsers support it.