Yep, you have a devicenet scanner in slot 1. The scanner can give you 32 words in and 32 words out, but if you need more, you have to use M0/M1 files.
Each time the SLC runs across a reference to M0 or M1 data, it must send information to the smart card and wait for a response, so it's better to do it once with a COP rather than dozens of times with OTE or XIC instructions. Also, the status of the M0 and M1 files cannot be monitored directly in RSLogix500 so you need a copy anyway to be able to see what's really out there.