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No, it's like they wind two strands of long thread (ok, they don't use TWO strands, there's two parts of the strand of thread - watch the video in the links).  They use two hands, one for each side of the strand, and (I know this might be weird-sounding) the entended part of the thread where the winding is extended, is held by their teeth. 
And they run the winding strands over the hair, grabbing it as the winded up part rotates. Here's a video of it:
Here's a video of how to do it yourself...
The girl in the video is doing it really slow, to show you how it's done, but my girl does it really really fast and finishes me in like two minutes. She's like a threading goddess 
Edited again to add another link:
She says it hurts, but it never hurt me 
 I must have thick skin!
It's a very old art. You'll see a lot of Indian women, Assyrian women and others in the middle east and orient doing it. My Greek friends know all about it to. It must be all over the mediterranean area.