If you look at the source code, you'll see that that is exactly what the program does. In this version it doesn't do much except add 1 to a counter and call Application. Later on, Moveone will list the move or do the graphics stuff. Its job is to move a stack of n disks from A to B using peg C as the spare. It does this using another bit of magic called recursion.
Recursion occurs when a procedure calls itself.
See this article in Delphi Techniques for a more extensive discussion. Some code to display output and to let the user stop if he puts in a big number and estimate time to complete and we're done. Next time, we'll present a version smart enough to list the moves. Work on that if you're bored and looking for something to do. Two more problems in recursion.