The first parameter, hWnd (passed NULL) is the window to associate the new process with (NULL means you aren't using this feature).
The second, lpOperation, is what you want to do with the file specified in the next parameter. Here we are "open"ing it.
Speaking of which, the third is lpFile: the file you want to perform the operation on.
The fourth, lpParameters is a string of the arguments you want to pass into the new process. These are not used in this situation.
Next is lpDirectory. This is the path you want the new process to think it was started from.
Finally, we have nShowCommand: this just specifies the starting state of the window for the new process. SW_NORMAL specifies that, what do ya know, it should start in normal mode!
You can look at specifics including other possible arguments at msdn's
documentation for this function.