You are correct.. You see, computers and cable TV uses different ways to make video. TVs do it by analog (new ones are digital), computers and monitors are digital. So, to answer your question, the video in and out simply means your video card can translate between digital and analog making you able to display whatever is on your monitor onto your tv or your tv on your computer.. You can sit on the couch and play games on your TV, watch those DVDs, or with the video in, record a TV show to your computer for editing or storage.. Lotsa possibilities.
AMD Thunderbird 1.2 on Abit KT7A-Raid, 256mb PC133, 45gb ATA100 HD, AIW Radeon, Acoustic Edge 5.1, ActionTec Modem, and an Acer LAN card.
2600+ on Abit NF7-S 2.0, 1024mb PC2700, 60gb IBM HD, AIW Radeon, 56k modem, on WinXP Pro SP1.