Greg,
Yes, the rope goes around the tree and back through the loop in the end. The rest of the rope hangs to the base of the tree. It's important to:
1) DON'T use a slippery tree like an Aspen, Birch, or real smooth Maple. Rough textured trees work best to hold your looped rope above your head. If it wants to slip down, I'll screw in a tree step to prevent that.
2) If you have limbs you have to get around, this WON'T work...but it also won't work for a climber. You'd need to climb those trees with steps and a lineman's rope around the tree to hang you sand. Then attach your ascending/descending rope above your head on the stand and drop the rope to the base of the tree. From that point on you can go up/down with your brake assisted belay.
3) All my components are high quality climbing gear...rope (10 or 11mm climbing rope), large auto-locking carabiner (sometimes the screw locking carabiners have un-locked for me), and the Petzl GriGri 2 brake assisted belay. I purchased mine from REI but any good climbing store will have these component
Warning: This is a system that works for me and I am comfortable with it. The climbing sales people are NOT allowed to give any advise as to using these components in this matter because they are made for climbing out of a climbing harness with everything in front of you. That doesn't work if you want to shoot a Bow!
Lastly make sure you put the rope in the belay devise the correct way. If you put it in backwards, you'll have a fast sleigh ride to the bottom of your tree
Try it out a couple of feet off the ground so you know how to work it in an emergency. Then hopefully you never need to use it. I know I was stupid & lucky in my younger days but just remember young or old and in shape or not won't make any difference if you fall! tippit