I read the wikipedia and my textbook, but I can't understand the whole process of Fast Fourier Transform. Especially the book uses the Cooley-Tukey algorithm and it gives an example of 4X4 matrix like this;

This book says the above steps are three steps of Fast Fourier Transform. Can I get an explain of these three steps? And how can I apply this to transform (1,0,1,0,1,0,1,0)? I guess $F_8$ would become two $F_4$ and again four $F_2$...