Explain the what does "createobject" mean with an example

CreateObject creates an object to interact with the specified library.

For Example If we want to interact with internet explorer to launch IE then we use create object and the library name.

Set IE CreateObject("InternetExplorer.Application")
IE.visible True
IE.Navigate http://www.google.com

Here IE is an object which is created to interact with the Internet Explorer Library.

Like wise for any library

Set xlapp CreateObject("Excel.Application")
Set QTapp CreateObject("QuickTest.Application")

What is the difference between a check point and output value?

Checkpoint compare the expected result of the Test object with the Actual result from the run time object and returns a pass or fail to the test result.

Output value retrieves the value of an Run Time object and returns to the test result.