What is the iteration setting?
The iterations apply to how many times a co-link analyis is done. An iteration of 1 means that the external urls of the pages pointed at by the starting points are fetched. After that a co-link analyis is performed, whereby pages receiving at least two links are retained. For an iteration of 2, after the previous step, the external urls of the pages pointed at by the co-linkee set are fetched and a new co-link analysis is performed anew. The latter (fetching of urls and co-link analysis) happens one more time for an iteration of 3.