I emailed them a few times last week about getting the "Expanded" package. Apparently, they have contract relations with many of the national channels, and one of the provisions is that they must provide their channels to users via the settop box they advertise for sale on their website. It costs about $300. They claim you can also lease it for about $6 a month, much like a cable box.
I asked, how do I get started on this?? They told me I live in Florida, and therefore I can't get it. So that told me that there's basically some state-specific or region-specific guidelines in place under whatever contracts they have open with the content providers. Closer look shows that most of the affiliate programming they offer (NBC, ABC, FOX etc.) are all the local affiliates they receive in their area of California where they are presently operating from. So, you may need to live in Cali just to take advantage of their $29 package... but they wouldn't answer that for certain.
They will upgrade you, as oldiesradiousa mentioned, to a Net-only expanded lineup package... which includes about 10 channels you're probably used to seeing: A&E, Bravo, HGTV, The Weather Channel (national feed only), History Channel, History International, The Biography Channel, MSNBC, CNBC, Soundtrack Channel, all of the major home shopping networks (cheesy, since that really shouldn't cost anyone a nickel but whatever) CSPAN 1 & 2 ... and then some lesser-known independent networks. And they let you have about a dozen or so music channels which are 128k stereo.... All for that $4.95 price tag. I've tried it for the past couple of weeks after I was so speculative about it when I heard about it, but it's not that bad. The feeds for the popular networks are all 700k, which is really nice when viewed in full screen on a regualr TV using S-Video out from your PC's video card. I really hope they can open up the contracts a little and put some more networks on their expanded package to the Internet though, because some of the channels they don't currently offer are sister networks of ones they presently can.