A quick and perhaps incomplete explanation:
Vsync limits you to a framerate equal to or a multiple of your refresh rate. If your vsync is set to 85Hz, your screen can only be updated 85 times per second, or 42.5, or 21.25, .... Disabling vsync allows your monitor to display frames as fast as your card can render them. The disadvantage is that you may see some "tearing" of the on-screen image if the video card supplies a new frame before the monitor finishes reading and displaying the previous one from the video card's memory, so you end up with frame A on the top half of the screen, and frame B on the bottom half. AFAIK, current video cards are double-buffered: the back buffer is where the video card creates the current frame, and the front buffer is where a completed back buffer frame is flipped. The monitor gets its image from the front buffer. I believe vsync prevents the front buffer from being written to unless a complete frame can be transmitted at the designated refresh rate interval, potentially leading to the monitor displaying the same frame for multiple screen refreshes, but avoiding the problem of multiple rendered frames being displayed in a single screen redraw.
Vsync is desirable from an image quality point of view, but not from a smooth frame rate point of view. The solution is triple buffering, which takes up more memory but adds an extra (front) buffer for a vsync'ed monitor to draw from if the video card hasn't rendered a new frame in time for a new screen redraw, thus eliminating the multiple-of-refresh-rate-framerate problem.
Edit: Vsync shouldn't affect how a level loads, AFAIK.