It is a machine gun. Like I said before, the term "machine gun" has no meaning outside of the legal definition given to it by the NFA. All guns are machines. The term "machine gun" is redundant and meaningless on its own. The term "fully-automatic, on the other hand, at least has some intrinsic meaning when describing a particular kind of firearm. All firearms are "machine guns". A 600 Watt handheld laser would be an example of a lethal weapon, or possibly gun, that is not a "machine"; i.e. not mechanized.
Actually, that little piece of metal acts as a "trip" for the hammer when the bolt carrier reaches the point where the bolt has loaded and locked a round in the chamber, cycling the entire action again and again while the trigger remains depressed.
i assume this has something to do with loading a round into the chamber.