The Internal Launcher is used to open games that the built-in Flash Player can not play directly.  This is done my opening an internal browser and trying to run the game. e.g. if you select a Game Catalog entry that references an html page (ends in .htm or .html) and then click the Play button you will be asked if you desire to use the Internal Launcher.

The Internal Game Launch window:

Copyright 2007 @ MarkelSoft, Inc.