It is shorthand for:

netsh int ip reset resetlog.txt

netsh i   i  r     r

The last ‘r’ being the “log file” that you really don’t care to read.

What does it do? It hits your TCP/IP stack with a sledge hammer. And forcefully rebuilds it via a rewrite of two Registry keys:

SYSTEMCurrentControlSetServicesTcpipParameters 
SYSTEMCurrentControlSetServicesDHCPParameters

This has the same effect as removing and reinstalling TCP/IP.

Please do this command in an Administrative command prompt
http://www.thewindowsclub.com/how-to-run-command-prompt-as-an-administrator

See http://support.microsoft.com/kb/299357

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