How does autodesk vault cope with revised items in assemblies?

First, I am fairly new to Vault and may not have a full grasp yet but, If a part is placed in several different assemblies or drawings and the part is changed then it will change in all of the assemblies. The key being that all the assemblies point to the same part. For example if the vault allows multiple parts with the same name and the assemblies are entered in the vault with newly drawn parts they will not update. However if the part is checked out of the vault and inserted, or if duplicate names are not allowed, then all assemblies are linked.
Was that clear as mud? or too convoluted?

Jim