How do i use this for drupal 6?

Would it really hurt so much to give some instruction on how this is used? do I just assume libs are loaded (bad assumption it seems)... Talk to us please...We are not all people who know everything you do...

Why information are you looking for? Something more than what is in the README.txt file included with the module?

Well, the only question for non techies is: Packed or minified? The explanaition tells me that minified should be used on production however packed is the default setting. So I ask myself: Should I change it to minified although the read me only tells me to enable the module. A clarification on this would be super-duper. :)

I am still curious. So if anyone could spare some lines of explanation? Thx!

This module doesn't replace files or cache. In the theme layer it detects when files, like jquery.js, are called and replaces the call to that file with it's own.

The packed version is no longer distributed by the jquery or jquery ui teams. Drupal 7 core now uses the minified version. I plan on removing the packed option and rewording the menu to be more clear.

In the drupal 6 2.x version of this module I've removed the packed option and renamed the options you can select from as production and development (with more technical info still there).

Is there anything else I can do here?

If you want to add additional files, do it in a theme or a new module. There are also other script managing modules for 6.x, I'm not sure if they're stable though.

Same question here, how is this module actually intended to be used, for folks who want to deploy something later than 1.2.6?

Apologies if this is actually somewhere, but I didn't see anything on the project page, in the README or in the module itself.

Edit: Yes, I realize that logically it would seem that I should simply replace sites/all/modules/jquery_update/replace/jquery.js, but I want to be sure.

Drupal 6 reached EOL (end-of-life) on February 24, 2016.