If the rollerset look is what you want, yes it can. Just make sure your hair is dry before using the rollers. Check out DSylla's album and her recent hair pics using the Caruso for rollersets. Her rollersets are beautiful! The instruction booklet that comes with it shows how to do regular rollersets and other techniques.
ETA:
I prefer to use end papers with my Caruso rollers also. I learned this from Hairlove and though the rollers are safe for our hair, I like the peace of mind and it saves my rollers too. Someone recently posted that it gives a smoother set using the papers.