Understanding the need for fflush() and problems associated with it

Below is sample code for using fflush():

#include <string.h>
#include <stdio.h>
#include <conio.h>
#include <io.h>

void flush(FILE *stream);

int main(void)
{
   FILE *stream;
   char msg[] = "This is a test";

   /* create a file */
   stream = fopen("DUMMY.FIL", "w");

   /* write some data to the file */
   fwrite(msg, strlen(msg), 1, stream);

   clrscr();
   printf("Press any key to flush DUMMY.FIL:");
   getch();

   /* flush the data to DUMMY.FIL without closing it */
   flush(stream);

   printf("\nFile was flushed, Press any key to quit:");
   getch();
   return 0;
}

void flush(FILE *stream)
{
     int duphandle;

     /* flush the stream's internal buffer */
     fflush(stream);

     /* make a duplicate file handle */
     duphandle = dup(fileno(stream));

     /* close the duplicate handle to flush the DOS buffer */
     close(duphandle);
}

All I know about fflush() is that it is a library function used to flush an output buffer. I want to know what is the basic purpose of using fflush(), and where can I use it. And mainly I am interested in knowing what problems can there be with using fflush().