How does the auto-reset on the arduino board work?

I’m trying to use the arduino board to program some other chip that requires rx, tx & reset. Now i’m wondering how the reset works because the other chip(propeller) requires a reset for programming. Can someone throw some light on this?

Cheers,
Pracas

The restet pin is heald high with a 10k resistor, the DTR line fron the serial is connected to it through a 0.1uF capacitor. When the serial transfer is initialised the DTR goes low, temporarily dragging the reset with it via the capacitor. The pullup resistor returns the reset to high afterwards. The manual reset switch just shorts reset to ground. Pretty rudimentary really.