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Yes, you can use Digital cable with the SD-H400.
In order to watch one, record another, you need to split the coaxial cable, and hook one to the cable box, another to the TV, then use the component, SVideo or Composite cables to connect from the TiVo to the TV. You won't be able to watch digital channels through the regular TV connection, but you will be able to record it on the TiVo.
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