UE-V is made up of four components:
Settings storage location
The settings storage location is a file share that the User Experience Virtualization agent accesses to read and write settings. This location is either the Active Directory home directory or defined during the UE-V installation. You can set the location during the installation of the UE-V agent, or you can set it later with Group Policy, WMI, or PowerShell. The location can be on any common file share that users can access. If no setting storage location is set during installation then UE-V will use the home directory in Active Directory.
The UE-V agent is installed on each computer with settings that are synchronized by User Experience Virtualization. The agent monitors the registered applications and the operating system for any changes to that are made to settings, and it synchronizes those settings between computers. Settings are applied from the settings storage location to the application when the application is started. The settings are then saved back to the settings storage location when the application closes. The operating system settings are applied when the user logs on, when the computer is unlocked, or when the user connects remotely to the computer by using remote desktop protocol (RDP). The agent saves settings when the user logs off, when the computer is locked, or when a remote connection is disconnected.
Settings Location Templates
The settings location template is an XML file that defines the settings locations to be monitored by User Experience Virtualization. Only the settings locations defined in these settings templates are captured or applied on computers running the UE-V Agent. The settings location template does not contain settings values, only the locations where values are stored on the computer. UE-V includes a set of settings location templates that specify settings locations for some Microsoft applications and Windows settings. An administrator can create custom settings location templates by using the UE-V Generator.
User Experience Virtualization Generator
The User Experience Virtualization Generator enables you to create custom settings location templates which will store the settings locations of the applications that are used in the enterprise and that you want to include in the roaming settings solution. The UE-V Generator will seek to discover the locations of registry values and the settings files for applications and then it will record those locations in a settings location template XML file. You can then distribute these settings location templates to the user computers.
Go overview of MDOP UE-V: http://technet.microsoft.com/en-us/windows/hh925634.aspx