What happens when Naruto is talking to the Kyuubi? When Naruto is talking to the Kyuubi is his mind or his spirit inside the Kyuubi?

What happens while he is running? Does he have something like an autopilot?
It's like thinking while running, or making a phone call.

His mind is there, but he's also aware of his surroundings, he's not gazing into space.

Also, it's very likely that these interactions happen much faster than we see them (in the real world), just like thoughts and dreams are experienced by the brain in a flash, while to us it seems as if it took minutes (in reality it took less then a second).