976
It's an X(HT)ML thing. When you use symbols like < and > within the JavaScript, e.g. for comparing two integers, this would have to be parsed like XML, thus they would mark as a beginning or end of a tag.
The CDATA means that the following lines (everything up unto the ]]> is not XML and thus should not be parsed that way.
When you are going for strict XHTML compliance, you need the CDATA so less than and ampersands are not flagged as invalid characters.
That way older browser don't parse the Javascript code and the page doesn't break.
Backwards compatability. Gotta love it.