It should include the two API classes needed by ModeShape clients: modeshape-jcr-api-<version>.jar and jcr.jar file. The "modeshape-jdbc-local-<version>.jar" file contains the ModeShape JDBC driver and is needed if and only if your web applications want to query the repository using JCR-SQL2 via the JDBC API. (I'd recommend getting it working without the JDBC driver at first; you can always add it in later once everything else is working.)
Thanks