Commercial skipping works by searching in the video file for black frames (fade out), network logos, and other heuristics to try to figure out when commercials start/stop. It then keeps those marking points in the DB. WHen you're watching a recording, you can hit the 'z' button and it'll skip to the next marked point. Note that this only works after you have made a recording and allowed some time for the backend server to go through the file and find all the commercials. You cannot use this feature while watching live TV.