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I've currently got a Dish 500 setup with a Dish DVR 501 (single-tuner). I will be moving soon and want to add HD Dish with a dual-tuner HD DVR. I am in the Salt Lake City area in Utah and I was told I would be getting a Dish 1000 satellite setup. Is this correct?

Next I was told I could just hook one line into port 1 on the DPP LNB (will it come with a DPP LNB??), have that line feed into the SAT side of a diplexer, and have the cable line feed into the ANT/Cable side of the diplexer. Then I could hook that into the one line going into the apartment. Then I use the diplexer inside the home to split the satellite and cable lines. Then the satellite lines will go into the separator and then into the HD DVR. That way I could get cable and 2 satellite feeds in one line.

Is all this correct? And does the dual-tuner DVR come with a separator? I just need some confirmation before I pull the trigger on this.
 

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Yes, it is possible to diplex the OTA or cable signal into your satellite cable, but I DO NOT recommend it because it degrades both signals.

I is better to run two seperate lines, despite the effort.

Buy the way, you DO NOT want to diplex cable into the Sat line any way, your 722 cannot decode cable HD channels and it does not have an analog tuner.

622/722 comes with a seperator to unstack sat signals from DPP lnb's.
 

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Also, most of the time, the satellite line will already be diplexed to carry the TV2 signal. The TV2 signal uses some of the same frequencies as a cable signal, so the two cannot coexist on the same line anyway.

Otherwise, what they told you is true: the 1000.2 dish has 3 DPP output ports, enabling it to support 3 receivers, either single or dual-tuner, without an external switch. Dual-tuner receivers come with a DPP Separator.
 
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