- If an item has automatic update selected, the content will be inserted into web pages as a read-only reference, and the content will update if the item is changed.
- If the item does not have automatic update selected, the content will be inserted as a copy in the web page, and the content will not update if the item is changed.
The Reusable Content is created using Reusable content list available in the List all site contents under site Actions Menu. This Reusable content list has all the reusable contents for the site collection.
The first thing to understand is that Reusable Content is unique to the Publishing feature in MOSS. It can only be leveraged in Publishing sites and pages because it is available in only in the Page Content Field, one of the out-of-the-box columns available in Article Page and Welcome Page page layout content types.
The reusable content is inserted into the sharepoint site pages by Rich text editor or publishing HTML content control for a Page Content Field which has icon to insert the Reusable content.
The step by step configuration for reusable content in MOSS is available here
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