It would actually appear not to break internal links as neither HTTP:// or WWW. are required for linking back to OCC. See Test Below:
forum.oneclickchicks.com/showthread.php?t=208254 or
Test
Unfortunately, neither HTTP:// or WWW. are required for linking to other domains, so links could still be made with the URL Tags.
CNN
But, it would break most URL's in regular text and this does seem to the the majority of the problem.