Microstepping

-Warning! Danger, danger, newbie question ahead!-

I just want to get a clarification about the microstepping Lawrence and
others are talking about, using PIC or other microcontrollers:

Is the idea that the computer/software just sends step and direction as
usual, and the microcontroller then handles moving the stepper in 1/4 or
1/8 steps? IE, the software thinks it is moving the stepper one full
step, as far as it is concerned, and the microcontroller handles the
part where it really moves the stepper by 1/8 steps.

Steve Greenfield