it is supposed to but we can't figure it out either. Sounds like the capabilities they say are available are just a bunch of BS. time to look for a better application for me.
Use Case: Share the iDevice screen with PC/Mac using USB cable. Then use webex or Microsoft Livemeeting to share your desktop and share the PC/Mac desktop live over internet. Also have the ability to record the iDevice screen interaction in PC/Mac as an avi file.
The free solution is iTools. Its absolutely free and provide lot of tools for iDevices. Download the zip file, unzip and double click the 6mb exe file. It will prompt you to update to latest version if you download from cnet site. Do update when it prompts. I tested with iPod touch 5th Gen, iPhone 5 and it worked like a charm. Click on Desktop, then Live Desktop. There is a slight lag which is not a deal breaker for me.
Download link: http://download.cnet.com/iTools/3000-2248_4-756297
or search iTools in http://download.cnet.com/
or from the hong kong site: http://itools.hk/multi_lang_pc_download.htm