Preprocessing

I'm just wondering how the preprocessing works.
Does it create a file with the set settings? Does it try to process (interpolate) as much of the video (as far ahead) as possible?
I'd like to be able to have it output to a file so that I can use it in any video player on any device with much lower processing power usage. In other words, I want to be able to do the processing up from, and am wondering if that is possible with SVP.