All it does is hook up to your wireless router so that you can have apps such as YouTube and hulu plus which use the Internet to stream programs there is also a few items that can let your current TVs connect to wifi such as the google tv platform currently only supported in the US by the logitech revue and uses googles mobile operating system android and apple tv which uses apples mobile operating system ios4
A wifi ready TV is just like it sounds. You probably had a cable ready TV before right? Wifi ready TV is the same way. It is set up ready to receive any wifi signal for streaming videos. You do not need a cord to run a video, game or DVD from you computer or any other wifi source to your TV.