Ok .. lemme explain the whole code.

Code: VB
Option Explicit
Dim objFSO, objFolder, objShell,  objTextFile, objFile
Dim strDirectory, strFile, strText
strDirectory  =  "e:\logs3"
strFile = "\Summer.txt"
strText = "Book Another  Holiday"

' Create the File System Object
Set objFSO =  CreateObject("Scripting.FileSystemObject")
The above code-segment does mostly initialization stuff and is pretty obvious.

Code: VB
' Check that the  strDirectory folder exists
If objFSO.FolderExists(strDirectory) Then
    Set objFolder = objFSO.GetFolder(strDirectory)
   Set  objFolder = objFSO.CreateFolder(strDirectory)
    WScript.Echo "Just created " & strDirectory
End If
The above code checks for existence of strDirectory. If it exists, that's good .. the script creates a folder object that represents strDirectory, else .. it creates the directory.
Now, about your question .. "I don't understand the results of this and what is the need for strDirectory when you can go immediately to the source."
Well, yeah you can go immediately to the source if it exists, else you would end up getting a run-time error that the specified path was not found !

Code: VB
If  objFSO.FileExists(strDirectory & strFile) Then
   Set objFolder =  objFSO.GetFolder(strDirectory)
   Set objFile  = objFSO.CreateTextFile(strDirectory & strFile)
   Wscript.Echo  "Just created " & strDirectory & strFile
End If
The above segment similarly checks for the existence of strFile and creates it if it's not found.
Always remember to check for paths before trying to access them, that would ensure smooth and error-free running of your program.

Code: VB
set  objFile = nothing
set objFolder = nothing
As objFile and objFolder are no longer required, unload them from memory.

Code: VB
' OpenTextFile Method  needs a Const value
' ForAppending = 8 ForReading = 1, ForWriting = 2
Const  ForAppending = 8

Set objTextFile = objFSO.OpenTextFile _
(strDirectory  & strFile, ForAppending, True)

' Writes  strText every time you run this VBScript
Pretty obvious .. gets a text-stream from strFile and then writes strText to it.

Code: VB
'  Bonus or cosmetic section to launch explorer to check file
If  err.number = vbEmpty then
    Set objShell = CreateObject("WScript.Shell")
   objShell.run  ("Explorer" &" " & strDirectory & "\" )
Else WScript.echo  "VBScript Error: " & err.number
End If

Shells a Windows Explorer to let the user verify that the file exists.

I hope things are clear to you now.
No probs if not, keep posting