Gov't Handing Out Coupons for Digital TV Convertor Box
Tony writes:In case you haven't posted it yet, those nerds like me that still use rabbit ears and free television programming (black & white for that matter), the feds are offering a $40 coupon for those who want a converter box for their non-digital televisions. I believe the retail price of these things will run $50 and higher.
Coupon Program [DTV2009.gov]

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I've (finally) started seeing PSAs explaining the digital turnover. Not bad, but they still have their jobs cut out for them.
I still have one analog set left. I plan on hooking it up to an antenna and watching the last broadcasts go off the air.
These converters are hard to find and expensive right now. You'd be better off waiting a bit for prices to drop. Problem is only 33 million are available, 2 per house, and you can't horde them because they expire 90 days after you get em'.
^-- i.e. 33 million coupons.
Has anyone heard if new antennas have the converter built into them?
Yeah, I still watch TV for free on rabbit ears, but I need a new antenna anyway and if I can just take care of this too, that'd be nice...
Converters are generally set top boxes although there are a couple of small inline devices around that sit between the antenna and analog socket or the antenna and a SCART socket. In the UK STBs can be had for £20/$40US but they tend to be supported by a broadcaster (Setanta Sport at the moment) and ones with expansion cards for additional paid-for options start at £40/$80US. I'm not sure if the US is adopting a similar system to the UK but I wouldn't be surprised if similar boxes and incentives became available if the drive is on.
In the UK they are normally about £20 from supermarkets, i.e. Tescos, Walmart/Asda.
They are a small set top box that connects via a Scart connector, if your TV is old enough that you don't have a Scart connector then you are looking at more expensive ones that have a tuner built in to send the signal back out via at a preset frequency (in the same way the VCR used to).
You can also buy more expensive ones which support CAMs (conditional access modules) for premium channels like Setanta Sports, or Top Up TV.