It's the acronym for: Rolling On The Floor Laughing My Ass Off And Scaring The Cat. It expresses extreme amusement for a funny situation; it is also used by nerd people in order to conquer the weak-minded noobs of the web.
Noob: "Heya m8!"
Nerd: "Wtf?!"
Noob: "C'mon, wazzup?"
Nerd: "Stop bothering me and lemme play WoW in peace"
Noob: "Wottaffukka is that?"
Nerd: "Stfu, noob! Rtfm! I'm gunna enslave you, rotflmaoastc!"
Noob: "Yes, master?"
Nerd: "u.u"
Rolling on the floor laughing my ass off while licking lovely ladies' lower lips having a car ride trashing the fuck out of the place throwing beams of light out in all directions slamming pans against my head psycho-like throwing dogs into oncoming traffic losing my socks in a storm of roflcopters distilling beverages banging my head against the curb with my hair on fire somewhere in Ohio while pissing in my pants.
Sometimes I like to curl up with a good book and ROTFLMAOWLLLLLHACRTTFOOTPTBOLOIADSPAMHPLTDIOTLMSIASORDBBMHATCWMHOFSIOWPIMP all over the place.