How does the Node.js event loop work?

Question

After playing with Node.js and reading about async i/o & evented programming a lot I\'m left with some question marks.

Consider the following (pseudo) code:

Answer 1

Have you seen this? I'm still getting the hang of it all and I can't answer your question in detail, but basically you're right about the thread-pool... Ryan explains quite a lot in the video.

EDIT: And this one from about a year later, when he goes into more detail.