Link wheel is nothing but large number of websites link each other for example websiteA links to websiteB and website B links to website C it goes on like this the advantage is we can get more number of one way links it helps to improve traffic
its basically bunch of different sites ... you use to promote your primary site and then do the same process for all those 1st step sites etc etc ..
He is right but website A will link to your main site, website B will link to your main site too. so on...
It may give benefit but you never know when Google might change their algorithm about these linking. sometimes Google will prefer one way linking or sometimes wheel linking it all depends upon Google.
The idea of a linkwheel gets dumb when you realize the internet itself is one large Link Wheel. Why fabricate dozens, hundreds, or thousands of sites, build them up, then link to you? The obvious answer is SERPS but the ROI with linkwheels is very weak. The better strategy is to just get links directly back to your site from website that are already built up, aka forums such as this one, blogs, article directories, and bookmarking sites. No need to become the internet.
Creating blogs on different free blog providers, and link the whole blogs to our site. Is this also link wheel?
It will give benefits if you are getting links from different c-class ip's and of course from relevant theme of websites
Link wheel is a process by which you rank better in SERP within short time, although major expert optimizer believe that Link wheel is a black hat method. But still some optimizer believe it will good rank if you maintain it a good way. Like Big wheel etc. You may check my site too... LINK WHEEL