HDPrime setup - channels and scbedules direct

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While this is mostly true there are two ways I think to get around it, and I'm sure you know better than I do, but for those that don't the 1. Network Sage recorder can use WMC to record programs, and an 2. HDPVR can be set up to record encrypted shows. Please clarify if my understanding is incorrect.

Option #2 there is correct, in that your can use an HDPVR with STB (with component video) to record any channel. Option #1 doesn't really get you anything though, because if you record an copy-once/copy-never channel, it'll only let you watch it in WMC.