AMP can smooth out some gaming, however, this can introduce input lag due to the extra processing.
As for the higher FPS, I've never heard of that, it's not really possible to increase the FPS of a source without making the source faster.
Perhaps someone in an explanation misrepresented the 240hz of the panel in being an up conversion of sorts. I'll go into some detail, in order to trick the eye and to appear smooth, some sets like the d7000 have a higher refresh rate then the source material.
It is nothing more than an internal raising of the refresh rate of the source material, it is not changing the source, but refreshing the lines of resolution from the default. If the source material is 24p, it can refresh the screen 10 times more often than on a stock 24p, all the way to 240hz. On a 60p source it can refresh it 4 times more to 240hz.
Due to the differences in the EU/NA panels, PAL/NTSC, the NA panels will always present a multiplier of 24 or 60, these numbers also tie directly into the CMR of the set.
But under no circumstances so they increase the FPS of the source material, they simply refresh the lines on the screen more often.