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That's essentially how it works. Some motherboards had this built right in. That's exactly what this is. For the price, you probably can't go wrong, but how "good" it is is something I don't know. The only PC I had with any kind of diagnostic built in were the Dell PCs with their four light codes, which were helpful, but not perfect.Just by looking at the bullet points on the linked page, I'm guessing it checks your PC's vital components and if one of them isn't functioning properly, it generates a 2-digit error code (displayed on the LCD on the card), then the user only has to look up what that 2-digit error code means from the card's manual and replace the faulty component.
Sorry if it totally doesn't work like that, I'm just pulling stuff out of my @$$ here :heh: