The chilli skinner basically works like this
1) cuts the object into sub objects based on an angle between two faces
2) stores the original object (but hidden)
3) optimizes the sub objects (not sure what that means)
4) rotates the sub objects so they have an upward (positive Z) facing for the center (average or mean or some other reasoning) of the sub object
5) spaces the sub objects out in such a way, based on size, so that they can be texturized in a 2d plane
6) flattens the faces to all zero z so there is no stretching on the surface after texture is applied
now you apply the texture plane to the flattened objects
7) remembers the vertex to vertex position of the original object and moves the newly texturized vertices to those exact coordinates, reforming the object
welds it all back together fully texturized
I mean it is great, if not for the errors I keep getting on complex objects