The vosotros form is used on a daily basis in Spain and rarely even heard in the rest of Spanish speaking world outside of church and in books and films that come from Spain, although people in other Spanish-speaking countries do understand it.
Vosotros is second person plural familiar. It occupies the fifth position on our verb paradigms. You already know something about the difference between 'tú' and 'usted', don't you? In very broad terms, 'tú' is used for people you are friends with or on a first-name basis with, and 'usted' is for someone you might call 'Mr.' or 'Mrs.' in English. Vosotros and ustedes are exactly the same thing, but in the plural form.
Some textbooks in the States don't even include this form in the verbs. We think this is a mistake because if you do go on and become fluent in Spanish, you will meet people from Spain and you will see films and read books from Spain, and you won't know what's going on. However, maybe you want to use the program to study for your exams and you aren't worried about watching films from Spain. No problem, just go to Tools | Options and turn it off. If you do so, the vosotros form won't come up in the verb exercises although you may see the possessive 'vuestro' elsewhere in the program. It's your choice.
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