Variables
From Wiki001
A variable is a placeholder symbol. It acts much like an 'x' in algebra, such as in the problem "x+2=3". The 'x' in that problem was the variable. It was a place holder for a number in the equation, where as it will be a place holder for information in your game. Normally in programming you have to know and decide if the variable is a string, an integer, or a real, but thankfully Engine001 automatically allows variables to be any of these, and can be converted seamlessly.
It is quite common for a game to first use Variable Operation to alter a variable for different circumstances, and later use Comparison Branch to check if the variable is a certain number.
Global variables are located under the Scripting section on the left panel in Map001.
Uses
Variables are used in almost every script that makes a game good, including quests, banks, names, cheats, and almost any other script you can think of.
You can use a variable to find what the player types in an Input Box, or find what option he chose from a Message Box and save by using Variable Operation, so you can use it later in the game. Alternatively, you could just use a Switch.
See the tutorials and forum for guides on how to make the scripts mentioned above, and more.
Local Variables
Local variables are useful when you want a variable to be used in only one event script, and want it to reset to 0 after the script is finished. Example: A Poker game where the pot is reset after the game ends, without having to make a new event to set it back to 0.

