This facility works by ignoring clips from programs where the name you enter appears in its title bar.
Many programs display the name of the file you are editing in the title bar as well as the program name.
If what you enter for the program name appears in the title bar of another program as part of the filename, no clips will be captured from it.
For example:
If you enter "Word" so as not to capture clips from Microsoft Word, and subsequently edit a file called "A word to the wise.txt" in Notepad, no clips will be captured because the word "Word" appears in the title bar.