So what I know from what I have read in various bits and pieces is that the purpose was indeed to remove the tip and ring connection from the sets once they were on hook. This seems to be reinforced by the fact that with this card in the system once you put the set on hook a short time after the the hook closes you can hear the relays on the card click which I assume is the T&R being lifted. I don't think they were meant to work with an exclusion key but I could be wrong there.
The theory being that if a set was on hook but a line key was selected that you could supposedly "listen" on the sets... Now how this would have been done seems obscure to me but I suppose with enough initiative you could intercept the lines anywhere from the CO to the equipment closet. Now I think we all assume this to be ridiculous but obviously some people took the threat seriously enough to make these cards in the first place...
I suppose the same thing could be a concern on VOIP lines. I have the discontinued TMobile "@home" VOIP lines for my work and home land lines. They are provided by a SIM card based Cisco router that presents 2 regular POTS lines. They actually work fine with the 400D cards and even work most of the time with the 565 dial sets (which surprises me). Along the same lines of cold war security it still makes me wonder who could have access to Mics and receivers in your phones via the VOIP router. Not that I think I need a tinfoil hat but still...

I do think there might be other interesting options on the cards and that is why I was looking for documentation. I guess the easiest thing is to get one in and have the lines connected and play with the switches and see what they do...
Anyway guys I appreciate the ideas. I'm just a bit happy I could stump the experts a little bit right off the bat
