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Thanks to Chris Johnson I now know how to create a feature staple with VSeWSS.
If you don't know what a staple is then Chris has a good description on his blog. You should read this first for more background but my simple explanation of a feature staple follows.
Feature staples are a way of attaching customisations to existing features and hence site definitions. This is acheived by creating a feature that associates itself with another feature. You can also add Feature Receiver code (which is like an event handler for feature activation) that lets you do all sorts of goodness that you can't do with CAML.
Feature stapling is the reccommened way of customising SharePoint. Site definitions may appear to be a good way to go, but dont. Andrew Connell explains why.
To create a staple you actually need to create two features: the feature that you want activated and a feature to do the stapling.
Update: I just found a much better description of the process here.
VSeWSS 1.1 does not yet support feature stapling via an item template, but you can still do this via a neat trick that the VSeWSS team provided. Here's the steps.
Normally you will use this method to deploy a master page, aspx page, css etc. If this is the case then you probably don't need to copy these files to every sub-site, just to the root site. Set RootWebOnly to TRUE if you want. Remember that if Module1 is copying files to a library then you need Type=GhostableInLibrary for each file that is copied.