Can someone clear up what RAM actually does?

[puudleduudle]

RAM: Random Access Memory.

In dumb people terms, it's a limited but very fast type of a hard drive. It can load and hold program data for whenever it is needed. You cannot save anything on RAM, so once your PC is shut off, all the data on the RAM is gone.
RAM cannot calculate anything.

Alright, I see. Thank you. So if I'm running an MMO with a lot of players, say a huge raid or Guild vs. Guild, RAM would help to load the different character models efficiently?

[SnOwBunZz]

While it will help, it also depends on your CPU, GPU and HDD speed. :/ RAM just makes sure that the most important bits are loading fast.