It's complicated to understand, it generates sum and difference frequencies for every combination of frequencies between the two inputs, so a sine at 100Hz and a sine at 200Hz would have an output signal that consisted of two frequencies: 100Hz (diff) and 300Hz (sum)
Same general rule as FM applies, namely that the output will generally be inharmonic unless the inputs are harmonically related in a nice ratio.
Now imagine one input is a bandlimited saw and the other is still a sine. The output signal will have twice as many harmonics, the sum of all saw harmonics with the sine and the difference between all the saw harmonics and the sine. It gets complicated fast, but as long as you use harmonic intervals you'll get interesting sounds other than your basic 'analogue' waveforms. You can give it a go by sending two oscillators into an s-rate * object.
Ring mod sales pitch over.