Italy-Kilometric Rail Passes

Only on The Straight Dope would I have any hope of finding someone with the experience I need for this question. Come on, Teeming Millions!

We are planning a trip to Italy this spring, and intend to use public transportation (rail and bus, primarily) to get around the country. One of the methods we have heard about is Kilometric rail passes. These are one of the few types of passes that are available in Italy (as opposed to Europasses, which are only sold outside of Europe).

As we understand them, Kilometric passes allow up to 5 people to travel up to 3000 kilometers (1875 miles) for a fixed amount. What we are interested in finding out is the process that allows the passes to be used.

For example, anything that we have read about these passes indicates that we must stand in line at the train station (or at an authorized agency) to use the pass for a specific trip. But if we know in advance what trains and times we plan to travel, could we use the pass to acquire passage on several different trains with a single visit?

And just how does the pass work? Is the pass used for your “ticket” all by itself, or do you use kilometers from the pass to “buy” a point-to-point ticket at a discounted rate? Can you just give the pass to the train conductor and have him deduct the trip from the pass, or must this be done in advance of boarding the train? What happens if you miss the train you had originally intended, and have to take the next available train?

While we have managed to find out about the existence of these passes in guidebooks and on the Net, we have not been able to determine exactly how they work. If any of the Millions out there have had any experience with these Kilometric passes, especially in Italy, your response would be appreciated.