Turok and Analoguesat, thanks for the replies. I am aware of the Quali receiver and I know 4:2:2 is a format not an encryption. There is a technical review of it on Wikepedia.
As a layman, this is my GUESS. Receivers receive all signals (including scrambled). The job of the cam/card is to give permission to view those signals. They can do this because essentially they speak in the same language.
4:2:2 however, is a slightly different language (a near cousin of 4:2:0) but different enough not to be understood by the chip (or Codec?) in the receiver. (A bit like Dutch and English - you think you,ve got it but its not quite right!)
The diablo manipulates digital data. The Skystar2 manipulates digital data. If the Diablo cannot manipulate the data within its current "package", then is there a market for some producer of cams to insert the appropriate chipset in a cam? It would be a simple and cheaper tool for those wanting 4:2:2 ONLY rather than having to fork out for a 4:2:2 receiver or the extra paraphanelia within a Skystar2 package.
I might be talking b*ll***s. But hey, the fun is learning and finding out!