Hello Graham,
EA stores its models in a database, whether it be the EAP file or a 3rd party DBMS. You can think of EA as being the front-end of a multi-user DB application.
When connected to a Shared model, all users are accessing the same (up-to-date) data in the DB. However, your "view" of the data, the diagrams and project browser, is not necessarily refreshed as soon as another user makes an update, as this would introduce potential performance issues. There are certain user actions that will trigger a "refresh".
When you have applied version control to the packages in your model, a "check-out" command triggers a "refresh". Since EA enforces serialized editing of VC packages, whenever you are editing, you will always be looking at and working with, the most up-to-date "view".
I hope that makes things clearer...
Best Regards,
Howard.