Okay, that isn't bad. Nice summarizing ability. <.<
Let's begin with the basics of the clan's techniques:
Looking at this technique, it's clearly the building-block for the rest of the Aburame's jutsu. However, it has confused even me, so I'll do my best to make sure that all questions around it are cleared up.
This technique simply describes the bugs, and as such I'll teach it differently than other techniques. The bugs you use feed off of your chakra, meaning that you can manipulate them by releasing small chakra signals that they will pick up (as they are used to your chakra signature) as orders. These "pulses" of chakra aren't seen by any type of sensory, though all types can easily see your bugs and their own chakra. Another aspect of the bugs defined in this technique is that they will drain 14 chakra points from your opponent for every turn a swam of them is in contact with your opponent (a small number of bugs cannot drain a noticeable, or even measurable amount of chakra, so you do need a swarm of sorts), and this ability is passive to the bugs.
This ability is more of a "post at the beginning of the battle" and "reference" technique, like the Sharingan. It doesn't allow you to do anything on its own, as it simply allows for the entirety of the Aburame Jutsu List, which is built off of this jutsu, to be used.
The part about the damage for "holds"... Honestly, I can easily see this technique getting revamped in the near future. For now, though, we have to follow the jutsu (unless it is ruled otherwise). As such, a small hold is any technique that allows your bugs to fully encompass a hand or foot, a medium hold has your bugs fully encompass the head, torso, or up to two full limbs, a large hold is basically just defined as between a medium and super large hold, and a super large hold is basically covering the whole body, though a single limb may be free and it still be a super large hold. And yes, as it is stated now, you get to add damage to techniques if they create these holds.
Now, are there any questions before we move on to the techniques derived from this?