Hi Beffo,
The voltage drop across 1 ohm is fed to the input of the comparator. So 1 ohm is used for generation of comparison voltage generation.
The voltage drop across 0.1 ohm is given to the input of voltage follower whose output will be the Vm-drop across 0.1 ohm. So this drop across 100 ohms. Which will result in I proportional to voltage drop across 0.1 ohm. Which is fed to 1K ohm resistor. This will result in amplification of the voltage.So finally 0.1 ohm voltage drop is amplified 10 times and output with respect to ground is obtained.
Regards,
SUDHIR