Imagine you're posting and you want to mention certain other users, perhaps to get them involved in the discussion, or to credit them with something. Mentions is where this comes in.
The format to use is
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[mention]persons name[/mention]
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[mention]Alex Brandon-Smith[/mention]
What's the point? When done, it adds some nice red text showing who you're mentioning, and notifies them of the post.
[mention]Alex Brandon-Smith[/mention]