OK I was right..It basically uses the same method we use here at NM to develop our themes..Good 'ole fashioned HTML and PHP editing. It does have a few extra features like

-Custom templates for each block
-Custom templates per module
-Multilingual themes
-Automatically supports right-to-left languages (currently Arabic and Hebrew)

but for the most part, you still have to manually edit the html files in your Favorite editor(dreamweaver) and then go from there. The AutoTheme is basically a template for you to start from..It does have some great tips and instructions and I would advise anyone developing their own theme to at least download it and take a look at the documentation.

mikem