Understanding C++ development environment

Hi I am a student taking Basic C++ prorgraming in the College of Don Bosco here in Papua New Guinea I am really keen to learn and understand how the programming evironment works such as the Editor phase, Preprocessor etc please help me with this.
This really needs a simple diagram to show the flow.
Here's a very quick overview:
http://i47.tinypic.com/30cq82s.png
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