How does collabedit works?

How does collabedit works?

I can not understand what is the difference between  normaledit  and collabedit 
When I open in  collabedit  the same zoho url in two different browsers it tells me  Sorry, We could not process your request !
Can you provide a How-To for  collabedit?
I guess reposting my file does not make sense because how would Zoho know that it is the same file? Just by file name? And if I have many users who has different folders, so can happen they have the same file name?