benny: so, what's your question and maybe I'll try answering it directly? ;-)

Scirocco is the codename of a Maemo release (v2.1). This Maemo release is the basis for IT 2006-39.14. There is a repository, designed for use within Scratchbox (the SDK environment) for Scirocco. As it says, this isn't *designed* for use on the device (it contains many things which are on the device, so could conflict).

Canola uses some Scirocco packages which aren't installed on the device by default. By adding the repo, nothing bad will happen unless you tried (as root, at the command line) to do certain operations like `apt-get install somecorepackageorother'.

HTH,

Andrew