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This option was renamed in MP 1.1.0 from Refresh Rate to Dynamic Refresh Rate.
First you need to understand the theory before you use this option.
A video file contains roughly 24, 25 or 30 frames per second (FPS). Your HTPC has a video card which produces a signal to your TV or monitor. This signal in theory can be anything from 24, 25, 30, 50, 60, 75 or even 100Hz. i.e. 60Hz means the signal is refreshed 60 times a second. If there is a mismatch in the FPS from your media file and the Hz signal to your TV or monitor, this is most likely to be visible as judder in the video. Dynamic Refresh Rate Changer attempts to address this by synchronising the output of the video with the rate of the TV
More Info
A TV modes tool is available to calculate settings for refresh rate changer based on display capabities of the TV you are using. (Thanks to Edterbak)
DOWNLOAD TV MODES TOOL (to calculate refresh rates)