Yes, it is possible from the internal disk, with a few channel exceptions where the content provider demanded that Dish encrypt their programs.
Thank you for providing a good answer in this thread dominated by misinformation, conjecture, and falsehoods! You might want to clarify that the term "encrypt" here means that Dish has the capability to employ CGMS (Copy Guard Management System) on selected programming if there is an agreement with the content provider. When/if they do this, the analog video stream (regardless of whether it is composite or S-video, or even component) may contain a flag for copy-once, or copy-never. Virtually all consumer DVD recorders will observe these flags. The real question here (which I don't know the latest answer to) is whether or not any content is actually being encoded with CGMS.
Most programs are not encrypted, unless you move them onto the EHD.
All content on the EHD is encrypted when written to it and decrypted when read from it, so the real question is whether or not CGMS is applied specifically to EHD content, but not the internal HD content, either in accordance with provider agreements or in general. I was not aware that the 622/722 made any such distinction. It was my understanding (which I would be happy to be corrected on) that the unencrypted video output of content recorded on the internal HD or the EHD is identical. In other words, if the original programming stream contained CGMS flags, they would be recorded to the DVR, and if the programming did not contain CGMS, the DVR would not add it anywhere.