From what I have seen, the vbulletin archive feature is only used in all versions until vb5 Is it good or bad to have it turned on At a guess, its duplicate content and from memory, the vbseo guys used to recommend turning it off
Does it benefit your site and/or members any? If not leave it off. If for some reason you've got a lot of traffic going to the "archive" leave it on, or redirect it and shut it off.
Something I had seen active on a lot of vb4 forums I have glanced over But gut instinct is saying leave it off when I finally finish research and test time on upgrading to vb4
The vb 3 forum I set up I had it on, because it was a general belief among forum admins that it increased search engine hits for the site.
Before most of the search engines adopted the sitemap.xml functionality, I personally believed it did some good. However, after most search engines are querying for the sitemap.xml, not so much.