What is it used for on the default install. IIUC fam is used to monitor
the status of files and if changed do something. Is there some desktop
sort of deal that this is used for?
Yeah, the file manager and anything else that uses gnome 2's VFS library may use FAM to watch the files or directories that they've got open. It's much more efficient to use FAM, which can simply "ping" the application to let it know there's an update, rather than checking for updates repeatedly.
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