From what I can find, it seems that in caucus states, geographic areas select 'representatives' (delegates) who then go to bigger and bigger meetings within the party until all of the state delegates are together, and they all vote. The delegates are not bound to vote for who the people in their district want to win the primary, but they usually do.
In researching this, I found some pretty under-handed tactics being planned for the Colorado caucuses to manipulate the election. I won't say which politician these people are scheming for, but the website is RonPaulForums.com.
Here's one interesting quote on how to get yourself in as a delegate to vote for the candidate supported at RonPaulForums.com:
In running for delegate -- make people's reasons to vote for you PERSONAL. Talk about local issues, improving the local party. If necessary, say that you will vote at the county assembly for whomever the precinct prefers...Wow. Talk about integrity and believing in democracy.
And another comment:
The preference poll [,the actual votes of the people you said you'd agree with,] is truly almost meaningless. The point is to ensure that your neighbors like you.
(source. emphasis added.)
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