The first part is almost self explanatory; it sets the variables for
cron.
SHELL is the 'shell' cron runs
under. If unspecified, it will default to the entry in the /etc/passwd
file.
PATH contains the directories
which will be in the search path for cron e.g if you've got a program
'foo' in the directory /usr/cog/bin, it might be worth adding
/usr/cog/bin to the path, as it will stop you having to use the full
path to 'foo' every time you want to call it.
MAILTO is who gets mailed the
output of each command. If a command cron is running has output (e.g.
status reports, or errors), cron will email the output to whoever is
specified in this variable. If no one if specified, then the output
will be mailed to the owner of the process that produced the output.
HOME is the home directory that
is used for cron. If unspecified, it will default to the entry in the
/etc/passwd file.