VNC encryption

On the android market (https://market.android.com/details?i...loudfull&hl=en) it says in the VNC part:

"Secure 128-bit encryption when using Auto Discovery"

Does that mean that if I access my VNC server (behind my router) via the auto discovery (using my gmail account) the communication is encrypted by the "Pocketcloud windows companion" even if the vnc server does not encrypt by itself? 

(encrypted from android to windows companion, which decrypts and uses loopback connection to relay the information to the vnc server?)