This SBSettings toggle enables/disables lighttpd web server on your iPhone.
Apart from the daemon, it also provides a lighttpd configuration file, since lighttpd package comes without a configuration file.
The configuration file also adds PHP support to lighttpd.
The toggle loads lighttpd server in webroot : /var/www/
The toggle loads /etc/lighttpd2.conf as a conf file. (in case you use another one already)
Note: Using this toggle and Lighttpd, you get a webserver running out of the box on your iPhone.
You can then simply open http://your_iphone_ip_address to access your web pages.