What is generic parser, what is it used for? Please answer in a simple language.

it's a parser that has nothing special about it.

A parser is anything that takes large amounts of data and breaks it up into smaller pieces of data.

I would guess the kind of parsers you might be familiar with would be string parsers. A string parser is a program that reads a string, such as "I was born on July 4th, 1976." and breaks it up into data, such as:
month is "July"
date is "4"
year is "1776"

This "generic parser" at toolbar.live.com in the history file is used by the MSN Toolbar, and will continue to be there while the MSN Toolbar is installed.

From looking at the source code (javascript) it appears to save your name, address and email address when you enter these into a webform so it can automatically fill these in when you go to another webform. It's not something you have to worry about.

See http://www.answerbag.com/q_view/469142

Its a parser that can recognize any kind of data, not just XML, Mathematical expressions, etc.
Usually works by following rules specified in a BNF or EBNF grammar. This grammar instructs the parser on how to read the data and create the DOM tree.
Try searching for TParserAll

Well, I have it in my history from today too.... from when my husband used the computer...

What would the generic parser mean when listed below "toolbar.live.com"?

Any idea?

Nice answer! That is right on the money.