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It's not that it helps so much with getting the sides smooth... you can do that with your knife/spatula. It helps to ensure that the cake sides are iced more straight up and down (at a 90 degree angle) rather than ending up with a cake that looks slightly pyramidal.
You can get one at Bed, Bath & Beyond:
http://www.bedbathandbeyond.com/product.asp?SKU=10164168
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