I finally learned what the cloaking feature of VSS does and wanted to share.

If you cloak a folder, you are marking it as a folder that you do not want to include in a recursive get. 

For example, lets say you have this dir structure.

$/
 - Apps (Cloaked)
 - TestCases

If you were to do a recursive get from $/, the Apps directory would be excluded from the get.

This is very helpful if you want to get latest, but don't want to get a certain dir, like "Images" for instance.  A real time saver in my opinion.

How To Cloak:
1. Right click on VSS project
2. Select Properties
3. Check the "project cloaked for me" checkbox.

Here's the complete ref.
http://msdn.microsoft.com/library/default.asp?url=/library/en-us/guides/html/vstskcloak_projects.asp