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From, http://askville.amazon.com/baconoffer-Golf-Scope-Distance-Finder-Tool-Excalibur-351-FREE-Shipping/AnswerViewer.do?requestId=50855489

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It is not actually a laser range finder, it counts on the height of the flag stick. There are 2 lines in the view finder, a top and a bottom. By clicking a button, the top line drops down a little bit with each click. You need to line up the bottom line with the bottom of the flag stick and the top line with the top of the flag stick. By assuming that all flag sticks are of equal height, it calculates how far away you are from the hole. You need to be at a spot that you can see the bottom of the pin or this range finder won't work. If you play a course that has a shorter stick than normal, it won't be much good to you either.

I got that exact range finder a couple of years ago and hated it. The batteries don't last very long and if you are below the green and can't see the bottom of the pin, it's worthless. I would not recommend getting that type of range finder, you won't be happy. I had to go out and spend more money to get a real laser range finder and no longer use the range finder in question. They also make a range finder like the one in question that doesn't use batteries. It has all the lines printed on the screen for a number of different yardages on it. You line up the bottom of the flag with the bottom line (just the same way the range finder in question does) and use the top line that comes closest to the top of the pin for your distance.
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The way my golf game is, I have to use a GPS to find the pin.