Need some help with the basics...

I know I should have read the forum, but I tried and still couldn't understand a few things about backlinks. Here's my problem...or rather..problems!!

1. Aren't backlinks supposed to be links we place on someone else's website pointing to out website? If so, then what the hell does PRstorm do?

2. I saw a thread on here where the software is reportedly posting backlinks to my website. How do I know it is actually doing so?

Please help me with this. I'm currently running PRstorm on one of my blogspot blogs to see what it actually does.

Backlinks meanz how many websites are linking to your website and your links links to other websites. But links should be relevent and not SPAM one's. And you have to avoid automated submissions of Back Links and focus on manual link building.