Dial out is allegedly required so that they can verify that the box is at the location it's suppose to be at, and for PPV billing (from what I've been told).
I happen to have two 522's. Not sure if it was suppose to happen that way (will elaborate if asked!), this seems to be an unuasual set up (or at least was at the time?). I have vonage for phone service, and both pass the dial out diagnostic test, however, when I look at my Vonage logs, I have yet to see a dial out at anywhere near the 3:00am time the 522's are set for.
I've only gotten one dish bill so far, and will be interested to see if they ding me for the $5. Don't know why I've seen no dial out activity. Is it an idle threat to scare you into making sure the box stays where it's suppose to??? (I just got installed late January).