For simplicity, assume we're only dealing with surfaces which have either a Lambertian or perfectly specular material. Morever, assume that the only type of lights are area lights (i.e. surfaces with an emissive material) and we stop tracing at lights.
In path tracing, we start by tracing a ray from the eye through a random point on the area of the view plane corresponding to the $i$th pixel. Now, depending on the BRDF of the hitted surface, we choose either a uniformly distributed direction on the hemisphere over the normal at the hit point (in the case of a Lambertian surface) or the direction of perfect mirror reflection (in the case of a perfectly specular surface). This process stops, when either no surface or a surface with an emissive material (i.e. an area light) was hit.
Quesiton 1: Now, PSSMLT constructs a sequence $(X_n)_{n\in\mathbb N}\subseteq[0,1]$. Actually, it's even clear to me how this sequence is modified by small step and large step modifications. However, what are the components $X_n$ exactly? Are $(X_1,X_2)$ the (normialized) coordinates of the randomly chosen area of the view plane corresponding to a pixel? If so, which pixel? And what is $(X_3,X_4)$? Maybe randomly chosen points on a unit square which need to be mapped to the hemisphere of the corresponding hit point? If so, we would need to store the normal and the BRDF together with $(X_3,X_4)$, don't we? And what if the surface which was hit has a perfectly specular material? Are then $(X_3,X_4)$ simply ignored?
Question 2: I've read that initial sequence $(X_n)_{n\in\mathbb N}$ is chosen by approximating the "luminance of path contribution" which is said to be independent of the pixel. I don't get that at all. And I have no idea how it is approximated by using path tracing.