My understanding is that a shaped charge warhead basically forms a penetrator (EFP) from the lining of the charge. I've been told that the jet of molten metal and gas acts just like the penetrating rod of an APDS or APFSDS round to punch through the armor. I've also been told that the "jet" burns a hole through the armor. Don't really know for sure -- but ti probably does not really matter, either, especially to the crew...
Anyway, this is technology that has been around since WWII.
The DU rounds use the DU for two purposes as I understand it. First, the mass give the penetrator a heck of a lot more kinetic energy and thus penetrating power. Second, once it penetrates, apprently it has some pretty spectacular pyrotechnic effects and basically explodes inside the target tank or AFV. This incinerates everything in the interior of hte vehicle, and kills the crew virtually instantly.
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TANSTAFL
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