I hope it's okay to link to WUS Omega forum - if not please remove this link:
http://forums.watchuseek.com/f20/automatic-manual-winding-some-basics-explained-598472.html
It's just easier than posting the same thing all over again here. Since this question comes up often, and people refer to the "clutch" in an automatic often, I created this thread a while back that explains the differences between a typical manual and automatic winding watch.
I don't see it so much here, but references other places for the "clutch" in an automatic winding make it sound much more complex than it really is. It's all very simple compared to the image most people have.
Hope this helps.
Cheers, Al
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