Jord, this is the laymans version.
Its not racing around a course.
You know what a GPS is, in this case it is measuring your speed and distance travelled over a period of time - 1 second intervals. That is every second the GPS registers where you are and how quickly you got there from the position you were in 1 second before.
The GPS team challenge involves 6 categories.
2 second peak: the fastest speed attained over 2 seconds
5 x 10 second average: the fastest average speed attained from 5 different 10 second runs
1 hour: the highest average speed attained in any 1 hour of sailing
alpha racing: (tricky one this) the fastest speed attained by sailing up, gybing and then sailing with the distance being 500m from the start to the finish - (i'm probably wrong with this one and someone else can explain better)
Nautical Mile: the fastest average speed over a straight nautical mile
Distance travelled: the accumulated distance travelled in any one session.
Basically racing against the clock.
In the instance of a team, you have to have 2 or more people register in any one day for your scores to count. this is the team aspect.
At the end of each session, you download the data from your GPS into a program called RealSpeed. It works out the categories for you

Hope that helps.