At present the majority of the focus is on enhancing the
   entorhinal area. It's believed that _this_ is the place where
   memory gets encoded into long term memory. I personally think
   there's a strong connection between memory encoding and
   retrieval and sinus troubles.

   Anyway, it's like boosting gain in an amplifier for a stronger
   signal, or adding a pre-amp to your microphone so you can put it
   through a line-input.

   They're not creating new memories/false memories/etc. Of course
   the EXPERIENCE of memory boost/retrieval is another story - how
   will it affect other neural systems and the subjective
   experience of it all; but I'm a huge fan of this. Our brains
   will be able to store/retrieve more, lessening the need for
   computers to store information.

   This is really fucking cool to me, because I didn't know we
   reached that point yet. I'm VERY excited.

   [1]http://www.darpa.mil/news-events/2014-07-09

   "Unique to the UCLA team*s approach is a focus on the portion of
   the brain known as the entorhinal area. UCLA researchers
   previously demonstrated that human memory could be facilitated
   by stimulating that region, which is known to be involved in
   learning and memory. Considered the entrance to the
   hippocampus*which helps form and store memories*the entorhinal
   area plays a crucial role in transforming daily experience into
   lasting memories. Data collected during the first year of the
   project from patients already implanted with brain electrodes as
   part of their treatment for epilepsy will be used to develop a
   computational model of the hippocampal-entorhinal system that
   can then be used to test memory restoration in patients. "

References

   Visible links
   1. http://www.darpa.mil/news-events/2014-07-09