Greg,

Without having one I can't say for sure, but this sounds to me like the unit is working just like other DSL devices. In other words, it's sending a digital signal over the phone wire and doing D/A for the video and audio or straight digital input to your HT processor for DD and DTS.

The digital IC chips (DSL) that do this are pretty cheap (note DSL routers with ethernet ports can be had for <$90).

This is also the reason it is not compatible with a phone line that already has DSL traffic on it (software protocol and signal incompatability).

Sounds like a great system for us HT enthusiasts.

bstan