What is the bookmark button for? It keeps disappearing.

The bookmark button shows at 'customize' time but then just goes away. What is it for?

That Bookmark button appears when the Menu Bar is hidden and the Bookmarks word menu item won't appear. Showing the Menu Bar is the default for WinXP; with Vista & Win7 the Menu Bar is hidden by default.
That particular Bookmarks button opens a slightly truncated view of what the Bookmarks menu item on the Menu Bar shows. There's another similar Bookmarks button that is sitting in the Customize Palette which opens the Bookmarks Sidebar.
If you want to see the Bookmarks button that "disappears" when you close Customize, open View > Toolbars and click on Menu Bar so the check-mark is gone and Menu Bar will be hidden, replaced by the orange Firefox button.

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