This was very helpful for me, I understand the process much better now. Thank you very much for taking the time to write such a elaborate answer Michael.

A couple of followup questions if you dont mind:

1. In the documentation I found something called Variable Fillet. However I can seem to be able to activate this in the Trial version I use, is it disabled?

2. About ViaCAD. I found that alot of people have been writing about 'Autodesk 123d'. From what I understand it a free software and by the looks of, at least this video below it seems it does a pretty good job filleting. Is ViaCAD to prefer before Autodesk 123d ?

http://www.youtube.com/watch?v=rtzDS9_VYSY