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Allows SKSE plugins to load before the game initializes. Let's say your plugin name is My and it's in Data/SKSE/Plugins, then you create a text file called My Plugin_in Data/SKSE/Plugins, the contents of the file does not matter. The d3dx9_42 loader will call Load Library on your plugin before game initializes.
You don't need this unless a mod specifically says you require this. At the time of writing this you only need it if you use Crash Fixes mod and Use OSAllocators=1 in the INI file. It allows the mod to make edit to game code before the game has any chance to run that code. Installing Put d3dx9_42in your root Skyrim directory (where is), NOT in data folder! How do I make my plugin load before game initializes?
No, Load Library can be called multiple times and will only load the DLL once, unless it's in multiple locations as different files.
Can I install my plugin files (including the _preload.txt) via. Yes - tested with MO 1.3.11Can I install my plugin files (including the _preload.txt) via. Yes - be sure to tell users to choose "Override Skips" on the installer so that the installs along with your SKSE plugin.