What is this adapter for?

Yes, you need to give it power. Connect a floppy drive power connector to the 4 prongs on the videocard, should snap right in.
 
My X700 dosen't take external power but mine is a PCI-e if that is an AGP it might need it but mine doesn't
 
AGP gives about 42w of power, versus the 75W of pciE. A lot of GPU's can live off of the < 75W of power from the PCIe slot, but the 42w from the AGP just doesn't cut it.

Today I saw an X800XT All in Wonder that used a floppy connector. I thought they had stopped using those altogther after the 9700Pro.
 
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