VSS (Visual Source Safe) It can use in automation as well 
as in manual.

VSS mean Visual source safe,it is a configuration management
Tool in which all your document are stored like ur
srs(software requirement specification),Brs,test
cases,build,test plan etc

1)all the document stored in this tool are visible to all
the team member who are working on the project 

2)every team member will have the user name and password to
access the VSS

3)assume there are 5 people working on a project all the
five can view document and copy the document in there local
drive with out editing the original document 

4)if u have written any test case ur going to paste a copy
into VSS 

5)u have a working folder for which u specify a path ur
going to copy all the document needed into that
corresponding folder

5)so all the document which are required for testing are
present there and if u have done any work u are also going
paste a copy of ur the work u have done in VSS 

6)For any project whether it is a Automation project are a
normal project every one who are working on any project
might be of any domain will use VSS for storing all there
document

VSS = Visual Source Safe, just a configuration tool.....as 
described in previous answers...

from testing prospective...yes it can be used for 
manual/automated testing to save the scripts.. OR (Object 
Repository)