Hi Purple Planet,
First of all, let me say that mindfulness (sati) is a factor of the eight-fold path, and is therefore extremely important. The continuity instructions you quote are therefore common to many meditation teachers as a way to build up mindfulness. Not only "vipassana" teachers but also "jhana oriented" teachers such as Ajahn Brahm stress it's importance:
Mindfulness-- Mindfulness lies at the heart of skilful meditation. Mindfulness is about “being aware, being awake, or being fully consciousness of what’s occurring around you.” But it is more than just that. “ Mindfulness also guides the awareness to specific areas, remembers the instructions and initiates a response.” At each stage of meditation in this course we aim to remember to be aware, to know what to be aware of, and to know when the mind has wandered from the instructions.Mindfulness in Day To Day Life
There is a general rule: what we do in our meditation practice affects what we do in our day to day life and what we do in our day to day life affects our meditation. If we value and practise mindfulness in our daily life, we will find it easier to practise mindfulness when we meditate. And as our mindfulness strengthens in our meditation practice, mindfulness becomes easier in our daily life. Daily mindfulness and meditation mindfulness reinforce each other. Sustained mindfulness is not that easy though! Mindfulness means remembering to be aware and how often we forget! When we remember again, we need to re-establish our mindfulness with a gentle, kind and non-judgemental persistence. Again remember, careful patience is the fastest way!http://www.dhammaloka.org.au/articles/i ... brahm.html
Having got that out of the way, let's move on to your rather more technical question. Your question is based on the classical "progress of insight" described in the Visuddhimagga http://www.accesstoinsight.org/lib/auth ... index.html
and used by many teachers, but most particularly the Burmese Sayadaws.
I'm not sure that it is particularly useful to worry about where one is in these insights. I would encourage you to work on your practice diligently. If you read the description below you'll see that what is being talked about is not trivial, and will probably take quite a lot of development.
If you do wish to know more details, you can read Mahasi Sayadaw's summary here: http://www.aimwell.org/Books/Mahasi/Pro ... Analytical
Thus, when seeing a visual object with the eye, the meditator knows how to distinguish each single factor involved: "The eye is one; the visual object is another; seeing is another, and knowing it is another." The same manner applies in the case of the other sense functions.
When that knowledge has come to maturity, the meditator understands thus: "At the moment of breathing in, there is just the rising movement of the abdomen and the knowing of the movement, but there is no self besides; at the moment of breathing out, there is just the falling movement of the abdomen and the knowing of the movement, but there is no self besides."
This stage is about being able to clearly distinguish phenomena into the categories discussed in the suttas such as the aggregates (form, feeling, perception, volitional formations, conciousness) http://www.accesstoinsight.org/tipitaka ... .than.html
and the sense bases (eye and forms, ear and sound, etc)http://www.accesstoinsight.org/tipitaka ... .than.html
Furthermore, these are seen as as empty of self, as also described in the suttas:http://www.accesstoinsight.org/tipitaka ... .nymo.html