WITH syntax is similar to using a local temp table or inline view. As far as I know, it is only supported in SQL Server (2005+, called Common Table Expressions) and Oracle (9i +, called factoring subquery). The intended use is to create a basic view that is used (i.e.: attached to) several times in a single request.
Here is a typical example:
WITH example AS (
SELECT q.question_id,
t.tag_name
FROM QUESTIONS q
JOIN QUESTION_TAG_XREF qtf ON qtf.question_id = t.question_id
JOIN TAGS t ON t.tag_id = qtf.tag_id)
SELECT t.title,
e1.tag_name
FROM QUESTIONS t
JOIN example e1 ON e1.question_id = t.question_id
... which will return identical results if you use:
SELECT t.title,
e1.tag_name
FROM QUESTIONS t
JOIN (SELECT q.question_id,
t.tag_name
FROM QUESTIONS q
JOIN QUESTION_TAG_XREF qtf ON qtf.question_id = t.question_id
JOIN TAGS t ON t.tag_id = qtf.tag_id) e1 ON e1.question_id = t.question_id
The example you specified:
WITH fileUIDS(fileUID) AS (
VALUES(1)
UNION ALL
SELECT t.fileUID+1
FROM fileUIDS t
WHERE t.fileUID < 1000 )
INSERT INTO files
(fileUID, filename)
SELECT f.fileUID,
TRANSLATE ( CHAR(BIGINT(RAND() * 10000000000 )), 'abcdefgHij', '1234567890' )
FROM fileUIDS f;
... . 1, 999 ( 1000, 0).