You can do the guided setup without a phone line up to the point where it attempts to connect to the network using the wireless adapter. If it successfully connects, then you can continue the guided setup. If it does not successfully connect, then you're stuck until you can. In other words, you don't need the phone line as long as you have a wireless adapter and that adapter can successfully connect to your network and the internet.
I believe that, with the exception of some dicey hacks, you're stuck using the Tivo wireless adapter. The
Tivo Community Forum website is a good place to ask questions like this. The site is independent of Tivo, inc. and has a lot of great information.
Hope this helps.
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