A more recent video explains the tech very well.
Search YouTube for a video called:
“Dream Chip xBounds mirroring to their OMAP3 HDMI dongle”

I can’t paste URL’s, otherwise the filtering blocks my post.

Cheers.

My phone is a perfect navigator in the car (easy to use, nonintrusive etc). With a small external screen it would be great on the bike as well.

xBounds is not competing against DLNA, it’s extending DLNA.
What’s missing: DLNA doesn’t provide fast reacting GUI for 3D Games support. xBounds uses the existing UPnP/DLNA framework for e.g. Discovery and adds the missing Games capabilitiy.

As you can see in the picture of my slide: xBounds uses any TCP/UDP IP connection with a lot of options: 
 - This can be protected WiFi or fully open – it’s up to you, or the contend provider.
 - This may be AccessPoint based (e.g for your home) or without using e.g. AdHoc or WiFi-Direct (e.g. during Travel).
 - Also xBounds can use WiFi or BlueTooth or switch between both automatically using BlueTooth-3.0 to save even more power.
==> It’s configurable – these are lots of options!

Bernd Steinke – xBounds Architect

With the state of DLNA not being as seamless as everyone would like I am appreciative of the idea of having a dongle for something like this.  I could use it at home but also easily pack it along to a friends home or business meeting and slap it into the ubiquitous hdmi port.
Then I know it is going to work regardless of their setup.
But… then….
I guess my last question would be about the wi-fi.
It says it supports protected wi-fi.
So this is not an ad-hoc solution then?
I would think ad-hoc would be preferable as depending on being able to use whatever wi-fi network I encounter seems a weak point.
I think my dreams of easy portability might be off base if it relies on wi-fi actually as some systems can have quite convoluted security – including requiring specific apps or clients to log in.  Especially at universities or large corporations.

Or perhaps I have misunderstood entirely.

I completely agree to you.

Using xBounds in your car to speak e.g. wirelessly with your phone is clearly one very useful and important area. This integrates the Steering-wheel keys in standardized and common way to control the Apps on your phone and mirror or extend to the big display in the Car.

As xBounds is written from the beginning as highly portable SW, Car-support via head-unit integration is clearly comming.  We’ve already very positve feedback from several Car-manufacturers resp. app provider like e.g. Navigation.

Bernd Steinke – xBounds Architect