The DirecTivo is like any other DirecTV box, you need the phone line to order remote control pay per view and other DirecTV housekeeping stuff. I've had mine for about 18 months without a phone related issue.

Not sure what unit you'll get, but it is likely to be a Hughes HDVR2 ( http://www.hns.com/default.asp?Curre.../tivo/tivo.htm )

I've heard rumors that there have been some 100 hour Samsungs floating around. I'd hold off until you get the unit installed before ordering the hard drive just in case...