KDE's SVN setup supports commit tags. So you would commit with BUG: 1100 and the bug 1100 would be auto-closed.
Since some projects switched to gitorious for code hosting (most prominently Amarok) those tags were not available for use any longer.
kde-git-processor is trying to fill this gap. Like KDE's SVN hooks it processes the commit messages looking for supported tags and then takes appropriate action on it.
These details are provided for information only. No information here is legal advice and should not be used as such.