What does the following syntax mean?
(function($){
    $.fn.columnize = function(options) {
    ...
What’s function($)?
What’s $.fn. …?
This convention is used when writing plugins to ensure there is no confilict with other Javascript libraries using the $ notation, whilst ensuring the plugin author can still use this notataion:
(function($){
    ...
})(jQuery); 
The author is declaring an anonymous function with a single parameter ($), then immediately calling it and passing the jQuery object to it. This ensures the function is called and that everything in it is defined.
A longer notation might be:
function MyDefs($){
    ...
}
MyDefs(jQuery);
Although that would create a variable MyDefs in the global namespace. The anonymous function pattern leaves the global namespace empty, avoiding conflicts.
It declares the columnize function as a jQuery plugin allowing you to use it on elements like this $('.someSelector').columnize(). You could read more about plugin authoring here.
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