Hi Michael.

Have you ever looked at the Navigraph AIRAC data? It is a list of names of fixes/intersections/airports etc. followed by the Longitude and Latitude coordinates.

This is a small snippet from the fixes.db in FSX\Captain_Sim\navigation folder:

HORSH;-37.726667;144.848334;2
HORSI;64.734603;-154.320900;2
HORST;39.402492;-108.014297;2
HORSY;35.319681;-101.653511;3
HORTA;21.799167;-101.568611;1
HORTA;40.660472;-3.286333;3
HORTE;44.217425;-123.398761;2

So I would say that you are correct in saying that it is the coordinates that the FMC is looking at and not the actual waypoint name.

Mark