The running/jogging theory may be just to build stamina and possibly to prevent "shin splints", but if you can do it, running is an excellent cardio exercise (many argue the best). There are a lot of interval programs that purport to be extremely effective in fat loss (inverval == walk 1 minute, jog 2 minutes, run/sprint 2 minutes... etc). I actually much prefer the interval method primarily because I don't get bored. 1 and 2 minute goals for each interval is much easier to keep in sight than 40 minutes straight at one pace.
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Keep your body lean, your blood clean and your mind sharp. -Rollins
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