Essentially yes. You create your vector art in CorelDRAW, click a button and it pulls the art into the DRAWINGS software and you start generating your stitches. I believe it is automatic and you adjust the stitches from there
Graphics - Corel DRAWings X3 - Corel Corporation
It doesn't beat traditional digitizing yet I have heard great things, especially from users of CorelDRAW. I would liken it to the t-shirt art separation progs out there. They will do a good job just not great. You still need to tweak for the optimum performance and final image