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it works like all the other looping products they make. but it listens to the audio from the decks and generates a midi clock for ableton to be slave to. it's pretty decent timing (of course it depends on the records you play) but add the nudge buttons in ableton and bob's your uncle. just don't cue it up to listen to abelton's audio outs, otherwise you'll get something like a feedback loop and then the timing does some pretty crazy overcompensating.
ps - redsound sells them through ebay as well at 1/2 price most of the time.