I just read HDCP's paper.
[Link: digital-cp.com] It works the way you describe. It definitely makes sense why there are so many HDMI problems. Too many devices trying to re-authenticate every 2 seconds.
BTW, I wasn't confusing authentication and encryption as the shared key is used in both as stated in the Crestron link.
HDCP wasn't part of 8b/10b when I was dealing with it and I'm glad it wasn't:-).
Regards,
Bob