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I am personally interrested in buying a ReplayTV so I can't
say if it can or cannot be done. but an educated guess tells
me that it cannot be done (at least as u put it).

MPG regroups a number of different encoding technics among
with you find two different categories -> streaming and block.

your DVD movie is block encoded where as your digital
satellite TV signal is stream coded, the ReplayTV uses the
later. These coding technics are not to my knowledge
compatible (note I could be wrong....).so you wouldn't be able
to take any MPG file and expect it to work on your ReplayTV
(note that these files on the net aren't always the same
format theyr pixel size may vary)

But if you find an MPG file encoded with a ReplayTV then I
don't see why it shouldn't work (just as advertised on theyr
web site.....)