Can someone explain how the RDS radio works...

I have read the manual 3 times and I still can't figure out what this RDS radio is all about. It seems to me that some radio stations imbed some kind of digital data in the signal and the system is able to display this info on the radio display. It also appears that you can get traffic information as well. I did an initial search and the radio found 3 stations in my area. While that is great, I still can't figure out this works....hehehehehe.

Anyone else similarly confused??? Maybe its not worth bothering with.

JordanK.