Good stuff this is.....used it for awhile now as a dewormer. It kills insects by getting into the joints in the legs and exo-skeleton. This stuff is like microscopic razor blades....it tears insects up.....they can't get into it and live. Get it from the link HBR posted or from Ebay.
This is what Ive always been told about it as well. Diatomaceous earth, also known as DE, is what is used in some swimming pool filtration systems. When I used to work as a pool cleaner (many years ago), we were always told to be careful while handling the DE because it was a carcinogen. Of course the stuff used in pools isnt food grade. But I dont know what the difference is so Im a little scared of the stuff.