Regarding the question about pulling out toxins that are floating free in the blood:
I suspect that that is probably the case (that the oils are pulling out free-floating toxins in the blood); however, I suspect that lowering the amount of toxins in the blood causes the body to feel able to let go of the toxins that it has stored up. This hunch comes mainly from the fact that I experienced a healing crisis a little over 2 weeks after I started pulling - I think the body felt that things were going well enough that it exuberantly dumped some of its stored toxins into the bloodstream, a little more than my body was able to deal with right then. :)
If you are familiar with the concept of diffusion, this makes sense - the concentration of toxins goes down in one part of the body, so the toxins in the more concentrated area tend to travel into the area of less concentration, and as we continue to pull over time, we lessen the toxin load throughout the body.