Important: As of 1.1 equivalent functionality has been made stock and this mod is no longer needed.

What does this do?

Makes the stock sky prettier, removes banding effect. The difference isn't amazingly big but it still makes the sky more pleasant to the eye.

Any comparison pics?

Sure, http://imgur.com/a/Z92DU

Is this based on or part of scatterer?

No.

How does this work?

Apprently the stock sky is rendered in HDR and someone forgot to take the results back to LDR resulting in a very weird sky. This applies a tonemapping function to the scaledspace camera, "fixing" the sky and making it look more pleasant.

Does this work on all planets

Yes, stock planets and kopernicus planets should all work.

Does this work alongside scatterer?

Yes, but with scatterer you don't need this, in fact using this with scatterer decreases the image quality.

How do I change the settings?

Alt+f10/f11