The script adds Spells to the NPC so that they have the Skills/Attributes of a Vampire.
It also checks if Player is the same Clan as the NPC, and changes the behaviour of the NPC accordingly.
It adds +1 kills to your total Vampire kills, which is used for a few Quests. (hence the Journal checks)
http://www.uesp.net/wiki/Morrowind:Berne_Clan at the wiki.
http://www.imperial-library.info/content/vampires at the Imperial Library.