Yes, the signals do reach all the way to the computer. But, it's not necessary for the signal to have reached the computer to turn on a lamp if you have a transceiver (the thingy with the antenna).

Here's an example: If you setup a macro with ActiveHome as a STANDARD macro, the macro gets stored on the computer (instead of the computer interface). You have to leave the Communication Bridge/Link (software) running though.

As far as custom applications, ActiveHome is limited to turning ON/OFF X-10 modules only. You can find third party software and hardware that can do other home automation things -- fancy ones, even! Commander-X is a fairly simple-to-use program that requires the user to know simple programming (check out the thread on this message board). Or if you know more extensive programming, they do have X-10 ActiveX controls for the "visual" programming languages.

Roland