That is pretty much correct Rock.

I started with a mono track with voice and guitar combined. I had turned it into a stereo file when
I added the reverb and had used some eg and compression. I could have gone back to the original
mono track but in this instance I used the processed stereo file. 16 bit 44 .

When I entered it into the melodyne what I got was a large field on note blobs. The melodyne accurately read the
meter would click right along with my playing which is cool and may come in handy for other types of editing. I also see that
you can directly record into the melodyne. They did send an extensive pdf manual which is better than programs I've actually paid for.
BACK TO THE BLOBS - the horizontal lines were the notes of the musical scale and I could see some blobs were right on and others were not - to find the singing notes was trial and error , but I could tell by the timing pretty much where the sung notes were and once I got the melody line going visually I could pretty much follow it on the grid. I only did a few nudges and held up a few notes that dropped off pitch because they were held too long. The program will edit pitch, pitch transitions,formants, timing and has several other features I haven't looked at yet. I do own Melodyne Uno which is their most basic editor.

If you saw the promo video that came out about a year ago, it's not going to be that level of separation of polyphonic material in the visual presentation. At least for me it was a little more difficult to determine what I was hearing from what I was seeing, but it did seem to all be there. It did take a couple of minutes to take my original file into the Melodyne (PowerMac with dual 2.0 processors, pre-intel) and they did suggest to enter only the sections that needed edits to save time. The other caution is that the vocal may include guitar notes if the pitch and timing coincide. That wasn't a problem for me , but could have been.