It will do both, later on. It does ride inside a template of some kind, which I think will trace a few shield templates. Its too big for a complex shield at the moment, and so is the end mill @2.5mm
I guess I could explain it better...
The table moves X and Y manually by the handle on the front. The quil moves the pin on the right and the end mill up and down together. The bottom block is a double vice, left/ right sides.
I don't know what else it would be used for except inletting. I think its cool too, thank you. I just happened to see it in the small shop of a hardware store that is going out of business near me.