What exactly does the accessory wire on the ignition harness do?

There are several wires at that switch. When the key is placed in the accessory postion it triggers power from the constant wire to flow to the accesories in the car such as the radio. When the car is starting that wires looses power to allow for more of the batteries power to go to the starter.
 
No it looses power while the car starts then the key falls back to ignition and power is again supplied to the accesory wire.
The difference is Ignition wire does not loose power while starting the accesory wire does. The radio is accessory as is the cigarette lighter. Basicly anything that comes one with that first key position after off is accessory.
 
alright. what happened was i cut mine while trying to remove insulation. i soldered it together but i am afraid it might split again. just wondering what would happen if it did.
 

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