1. This is a very archaic phrase -- as you probably already know. 2. This is probably the only place you'll ever see the word "stead" used. It means something like a place or a location. 3. So, "it will stand [me, you, he, us, them] in good stead" means "it will put [me, you, he, us, them] in a good place": - Your knowledge of English will stand you in good stead. - Their politeness will stand them in good stead when they visit the Queen. 4. Again, super archaic.

It means for something to be of great use and/or benefit to someone. Example: That umbrella stood me in good stead on our trip; it rained every day. http://idioms.thefreedictionary.com/stand+in+good+stead