First wort hopping is the practice of including an addition of hops after the mash but before the boil, with a rest at sparging temperatures (155-160 deg. F) of at least ten minutes (you can get more or less the same results in extact brewing by adding the hops to the water as it is being heated, again with a ten minute rest at 160deg F). The goal is to isomerize the humulones before boiling, which makes them more stable and prevents them from boiling off. It is done as an alternative to the flavoring hops additions. While it actually increases the alpha-acid utilization, the results are less bitter than would be normal for the IBUs in the wort; first wort hops generally give about the same bittering effect as a hop addition at twenty minutes, but most experts hold that the overall result is smoother and more defined than the usual flavoring additions. It is generally agreed that FWH should amount to at least a third of the overall hopping rate.
I've used FWH a number of times and gotten excellent results.It's definitely something to consider when brewing a style with a lot of hop character (e.g., American Pale Ales, Pilsners).