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Can anyone confirm if this is how Conga Composer generates a PDF from a report:

Related question: Can report data be accessed programatically?

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When clicking a Conga button, you're essentially interacting with Conga, not Salesforce. You pass it your SessionID so it can log into your instance of Salesforce, then Conga retrieves the data from your reports or Conga Queries. Conga then composes a doc/pdf/spreadsheet on it's own server as per your settings and provides it back to you with accompanying actions.

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Just for reference DrawLoop is similar to Conga and can use reports to pull data into the PDF but can also interface directly with the Salesforce objects as well so you don't get the limitations you can get using Conga.

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    Drawloop has many features other than Conga Composer like you can trigger field updates or Emails after document generation. Even you can create document from Apex which is actually not possible using Conga Composer. – Jitendra Zaa Sep 11 '12 at 10:30

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