link takes a string, parses it as a piece of script code, and returns the script.
For example,
(link "(a b c d)")
returns the list,
(a b c d)
In practice it is not very useful, since you can get the same result with (list) and other techniques. It is used internally to load stored scripts. For example, the script contained inside <Events> is "linked" to convert into something that can be eval'ed.
Now that will come in very handy... The DockScreen Framework is full of stored scripts, so perhaps this will simplify some things... must look into this one day.