It should work just fine. It's technically no different than renting a set top box and having limited basic cable. The HD locals are part of that package.
If you have problems convincing them it's possible; try signing up for regular digital cable, then when everything is working, call and downgrade but tell them you want to keep your equipment.
EDIT: Looks like I replied before I read the whole thing
What you described (and I described above) should work fine, but I'd try and see if they'll just give you the cards with Limited Basic.
If you have problems convincing them it's possible; try signing up for regular digital cable, then when everything is working, call and downgrade but tell them you want to keep your equipment.
EDIT: Looks like I replied before I read the whole thing