It means Elite in the meaning of the original "word" 1337, 1337 kind of upside down will spell LEET, L33T if you want to, Leet when you say it sounds like elite, and although elite is not used very often you say it when someone is "really pro" or "really awesome" or something is really awesome.
Hey *friend* have you seen the new starcraft 2? It's really Leet!
I played CS yesterday, there was this really 1337-guy...
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