I presume it is all on a chip in the body.

Yes. The guitar is tuned as normal, you then can switch to the alternate tunings with the knob.

This means that you must play the guitar as an electric to actually hear the alternate tunings, acoustically you will hear the normal tuning. If ypu play very softly this can be a problem.

Some folks report that they can hear both tunings, ie they get some bled thru of the normal tuning while having some other tuning selected. I haven't played mine with the alternate tunings that much, so I can't say that I've heard that.

Gil

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Where ever you go, there you are

1998 Ovation 1861 Standard Balladeer Natural
Taka - 2005 Squier '51 Black
Yume - 2006 Squier Strat Cherryburst
Houbi - 2008 Fender VG Strat Blizzard Pearl - won here
Fender Super Champ XD; Vox DA-5