The hubs (on the rotor) have internal splines with the axle shaft stubs comming right through the middle having external splines. The manual lockout hubs are bolted to the hub. The lockouts have a cog that has both internal and external splines that match the ones on the hub and axle shaft. It is spring operated. When the lockout is turned to 'lock', the spring puts pressure on the cog, which forces the cog into the hub and axle shaft making a solid piece. When it is rotated to 'free', the spring is retracted, which drags the cog back out letting the hub and axle shaft turn independendly.
Never had to deal with automatic locking hubs, dont want to, so not too familiar with their operation. Hope someone else can detail this one.
Hope this clear it up.
-Randy