1) Yes, you need an image to flash the box with
2) that's for a virgin cable (or terrestrial areal), the cable goes into the RF connector and then that goes into the tuner port.
3) if you've only got a satellite cable then you can only use one tuner, unless you've got an areal too, though that'll only give you free channels so you'll still effectively only have one sky tuner.
If you've not got cable you may as well return it and get an H.2S.
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