The 522 has two tuners. If the tuner is in use to record a program, it cannot be used to view another 'live' program. So the short answer to your question is no, you cannot simultaneously record a program and be watching two 'live' programs at the same time (unless of course you are watching the 'live' program as it is being recorded, which kind of defeats the purpose).
Look at the 522 as having two separate outputs and that each of these outputs has two sources of programming, either a 'live' channel using the tuner or a recorded program from the hard drive. You can figure out the multiple setups yourself. Hope that answers your question.
You can watch shows that have been recorded by your DVR on each TV while each DVR is recording another live show. If you are watching live tv on a tuner that tuner can not record another channel --- it can only record the live tv that you are currently watching. I have my 522 hooked up to 1 tv is that tuner 2 does most of my recording and I am free to watch live tv on tuner 1.
Yes, that's true (I've done it). However, when I put this much load on the DVR unit, this is where I have ocassionally encountered audio/video glitches. For example, of of the shows that was recorded might have an audio dropout for a second and/or a video glitch. It's not frequent, but it has happened. Watching one show and recording another on the other tuner has rarely resulted in problems, but recording two and watching one or two pre-recorded shows has. On the other hand, it's very nice having this ability and it works quite well most of the time!