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Yes, I do lose some quality--for one thing, I can't use an HDMI connection with my cable box to record; it will only work with a composite or component connection. But the trade-off of quality for being able to keep something permanently is worth it to me.
Mostly I record old movies and old TV shows. For the TV shows especially, the quality wasn't great to start with, but it's good enough. A lot of this stuff isn't available commercially.
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