Extended attributes are "named metadata associated with a filesystem object" such as a file, directory, symlink, etc. Each extended attribute consists of a unique name and a small bit of data that can be attached to any file or folder. This bit of data will (assuming something doesn't strip it off) stay with that item wherever it goes.
To give you an example, when you download a file from the Internet in OS X 10.5 (Leopard), a tiny chunk of data is attached to the file with the name "com.apple.quarantine". com.apple.quarantine is an extended attribute attached to the downloaded file. Whenever you open a file or application that has a com.apple.quarantine extended attribute, the Finder will warn you that you're about to open something downloaded from the Internet. If you say that's OK, the com.apple.quarantine extended attribute is removed.
Tiger had the ability to use extended attributes, but made little or no use of them. Leopard has begun to make use of extended attributes and their use is growing daily, both by Apple and third party applications.
Other examples: The extended attribute "com.apple.metadata:kMDItemWhereFroms" records the URL where an item was downloaded from. The "com.apple.TextEncoding" extended attributes identifies the encoding of a text file so the application doesn't have to guess. "com.apple.diskimages.recentcksum" records checksum calculations which help disk images mount faster.
Some extended attributes, like "com.apple.FinderInfo" and "com.apple.ResourceFork" mirror legacy item metadata (which QRecall already captures).
You can see the extended attributes of an item using the -@ switch of the ls command (in conjunction with the -l switch). So, to see the extended attributes of the items in your Documents folder, open up a Terminal window and type
ls -l@ ~/Documents
Note: I've uploaded a newer version of the QRTouchXAttrItems tool that does a better job of ignoring extended attributes that QRecall already captures.