I'm no expert on chunkloaders, so what I write may be wrong. However, my understanding (and what we've found to be the case on our server) is that a chunk loader replaces you, or the player so to speak. So once the size of the chunk is set (eg, 3 chunks) anything in that area is treated the same as if the player were there. Equipment, machines, monsters, animals...all would be tracked by the game. So, yes, turtles are tracked, too (as long as the turtle stays within the boundary that the loader has set. Setting that config to true means that the loader will work with the player offline, setting it to false means it will work only if the player is logged in. Some servers require a player to be online before it will work (false), some don't allow for chunkloaders at all.
