I really need to put a good description on this on the website under the product pages, so I apologize for the confusion. Here's a brief overview of the power architecture on the TinyDuino / USB Shield:
The are 5 power supply rails that are supported on the TinyShield connector, however some of these are for legacy reasons or for future boards, and aren't used with the current generation of TinyDuinos. VIN, +5V,+3V3, IOREF (which we also call VCC) are rails that are supported on the standard Arduino, and we add a VBATT rail for the TinyDuino. The TinyDuino processor and TinyShields don't currently use VIN or +3V3, but these could be supplied later with a power adapter TinyShield. On the standard Arduino, VIN is 7 - 20 V (or roughly around that range), and is used to create the +5V and +3V3 supplies. It's assumed that if VIN is present, then a power adapter TinyShield is supplying power to the +5V and +3V3 rails. Using this architecture, it's possible to interconnect TinyDuino and standard Arduino boards (we may eventually have an adapter for this if there is interest).
VCC is the power rail that the main processor and the voltage the I/Os of the processor run at. The TinyDuino processor boards supports two options for supply the VCC power: VBATT is the battery voltage, and can range from 2.7V to 5V. The +5V rail can also be used. The power circuitry on the TinyDuino processor board (namely Q1 and Q2) controls which one is used, these transistors form a basic Ideal Diode circuit, and will supply the higher voltage to VCC (without a diode drop), by switching the appropriate FET on.
So basically the TinyDuino will run on VBATT, unless +5V is present. If so, it will run off of the +5V supply and not draw power from the battery.
+5V could come from multiple places, such as an external power supply TinyShield, or from the USB TinyShield.
On the USB TinyShield, the transistor Q1 serves the purpose of not connecting the USB supplied +5V to the TinyShield connector unless VIN isn't present. If VIN is present, then we are assuming there is an external power supply attached that is supplying +5V already.
Again, I apologize for the lack of documentation about this, we are planning on creating and posting all this. But in the meantime if you have any other questions, please just ask in the forums.
Thanks!
Ken
The TinyDuino processor board uses two voltage rails, +5V and Vbatt.