I did test in a real environment, and it works fine. A smartcard is used to securely store cryptographic information, such as users' certificates, passwords and private keys for example. And yes, it can be used for windows login, mount encrypted drives, email/file signing and encryption etc.. The mobile SIM cards are also smartcards. I guess you could find more examples and applications on Aloaha.com and Truecrypt.com. Thank you for pointing out the smartcard remove service. Might be useful later on.