I have a MFJ 1026. I do not use it for noise reduction, but rather as a phaser for MW DXing. The principle is the same, it allows you to vary the amplitude and phase of signals from two antennas such that they are equal but 180 degrees out of phase, canceling out the signal in question. For MW DXing, you use it to null out an offending station, to hear what else is on the same frequency, under it. I've had pretty good luck with that.
For noise reduction, you do the same thing, except you are nulling out the QRM source.
Note that you can only null out one signal with it, at best. If you have multiple offending signals on the same frequency, you can only kill one of them. I say one at best because it is always possible that due to the orientation of the antennas, you won't be able to null out a particular station.