Some simple explanation:
PATH=C:\WINDOWS\system32;C:\WINDOWS;C:\WINDOWS\System32\Wbem
PATH=bla bla bla

allows Windows to run files automatically when you use the Run command. (Start > Run)
Before each semi colon ( ; ) is the path name to a folder where the programs are located.
In my case, it's
C:\WINDOWS\system32
C:\WINDOWS
C:\WINDOWS\System32\Wbem
If your programs are there, you can easily run any programs by just using the run command.
You can try putting any files in and run it. It would run without giving you the error that file or batch program not found.

You can add more paths to it, so a lot of programs would run automatically.

Right click My Computer and select Properties.
Select the Advanced tab.
Click on Environment variables. A new window will open.
In that new window, go under System variables. You will see Path followed by C:\WINDOWS\system32...
Click on the Edit button. Press the End button on your keyboard. Add a semi colon followed by the path.
%SystemRoot%\system32;%SystemRoot%;%SystemRoot%\System32\Wbem
;C:\Program Files\CCleanerThe blue part shows what I edited. Now CCleaner would run automatically whenever I use the run command.
Lazy people, lazy ways.

Java programming students will know, because if you don't, your programs won't run.
