The way I understood it, it detects if an object has moved further this frame than the threshold value. If it has, then it sweeps a sphere test over the distance it is planning on moving. If it detects a collision it just sets the integration to whatever fraction matches where the collision was detected.
The problem I have had with this, is that it doesn't modify the velocity in any way, so the next frame it is travelling just as fast and activates the CCD again. This gives the result of it just getting stuck permenantly on the surface it collided with..
I kind of hacked in a btTransformUtil::calculateVelocity to update the velocity using the current world transform and the newly clamped one, but I see artifacts with this - I think there's got to be friction stuff and some kind of consideration of the collision normal..
So yeah!
Just passing on my experiences with the CCD
Would love to get the problems ironed out though, its so incredibly useful to have certain objects guaranteed not pass through anything in the game I am doing