Check out the wiki page for the Channel Wizard here. There is a link titled 'Introduction to adding channels' that does a pretty good job of explaing the signals. If I remeber correctly I think the source code is available for this project and the hardware is quite reasonable. The RCGroups page here might actually be an even better place to look for information on how the Channel Wizard works as most of the developement is outlined in this very informative post.
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