I have seen a number of people quoting this Hadeeth for various reasons; however, they do not understand what is meant by the Hadeeth. They think that a Kaafir had died and Rasoolullaah صلى الله عليه وسلم had stood up in honour of him. However, the Muhaddithoon have explained that this is not the case. Rasoolullaah صلى الله عليه وسلم had stood up for one (or both) of the following reasons:
1) For the Malaa'ikah (of `Adhaab) accompanying the body.
2) To show the gravity of Maut (death).
And other `Ulamaa have stated that standing up was later on made Mansookh (abrogated).