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Yes, it's true.
IrDA is an (old) spec for infrared data connections, used by (old) mobile phones and (old) notebooks.
IrDA hardware does not support the IR signals used by remote controls.
If you just want an IR USB receiver, my advice is to search eBay for the cheapest MCE remote + USB dongle combo you can find - some can be had for $5 incl. shipping from Asia. Plug in the receiver and use the Harmony to repace the (most probably) crappy remote.
If you want to take the save route, buy an original Microsoft MCE remote or a compatible Phillips one. These are supported out of the box in XBMC.
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so nobody sells USB IR dongles that look similar to flash drive. I don't want something with a long USB cable for the REVO is there not a USV mini dongle that supports IR that is low profile? Everything I have seen says IRDA on it. Thanks.
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Why was this not asked on the LIRC mailing list? It has nothing to do with XBMC...