It is your understanding that is confused. The Initial state was the Void. Then the Void became activated, the Reality Cells appeared or came into existence, filled with random data which is a high entropy state, which then began to interact according to a rule set for the Reality Cells. This progressed until self organization and emergent properties produced the pattern of the RWW separating off 'patches' of Reality Cells as IUOCs which spread over all of the LCS. This produced AUO by uniting the whole of the LCS into the one thing so that all parts could communicate together and interact together. This initial state of AUO was high entropy but finally united the LCS into AUO.
AUO began to interact internally with its IUOCs sending messages that were initially meaningless over the RWW, meaning began to develop and this vast information system eventually developed consciousness as it shed entropy. AUO eventually became The One Consciousness. Then it started creating VRs, first NPMRs and then eventually PMRs and became AUM in its quest to further lower its entropy and improve its QOC.
This is of course the barest outline. You might study the more complete version of Tom Campbell's model on Tom's Wiki: http://wiki.my-big-toe.com/The_MBT_Model_Link_Page
It's only about 20 pages, although they are long, wiki pages with much information. I have in mind making some updates to it which I have mentioned on the board in terms of understanding some things that might be further said regarding the rule set and functionality details of the LCS which take the LCS far beyond Cellular Automata as studied here in PMR mathematics. Unfortunately some health problems interfere with my work here at present until some side effects of a medication I no longer take wears off. It is slow to wear off.
This information is basically in Tom's books, but some of the more advanced aspects of it are included only in terms of references in the last section of the last book to other researchers who had pertinent ideas and also the concept of Cellular Automata. While CAs were basically described in his books with the reality cells and contained data interacting according to a rule set, the LCS was not called a CA, in order to keep the complexity of the description down in his books which are the beginning of your study of MBT
theory. May the force be with you on your quest for understanding, young Jedi.