Its used on the page level and returns the rendered output of document x. So, if you wanted to show the output of the 3rd item somewhere other than in the Ditto sequence (it will still be displayed there however) you would place [+item[2]+] (x starts at 0) there.
Actually there is a bug in 1404-1406 that was introduced when I changed the start and end behavior of the loop to fix the bugs you found. Download 1409 before you try using this.
1. It starts at 0 because thats how all loops in programming start. Also, &start starts at 0.
2. This is used for things like showing 3 random items with an ad in-between. You’d set save to 3 and then put the item placeholders in your document with the ad inbetween.
3. This uses whatever template would normally be applied to the document if it were still in the loop.