I have another question relating to vaults. If I have a an object in Windchill and it has several iterations and revisions. Would each of those iterations and revisions have a unique file in the Vault? So if the iteration history show 8 then there would be 8 corresponding files in the Vault?
No. If just database stored content was updated a new iteration can potentially point to a previous iteration or revision of content. A new file has to be transmitted to the server. This doesn't imply at a binary level of 1's and 0's that the two files are identical but to you they may look identical. A good example is updating properties inside a CAD file, but not altering the model.
I think the easiest way to look at this is too ask did I upload a file during the creation of my new iteration. If no, than the new iteration points to the same file as the previous iteration. Simple as that.