Yes, but when you are setting up a new, virgin box (that you JUST bought) you actually get a "trial" period of service (I believe it's a week) that DOES allow you to complete the setup process. You would then sign up for the actual service AFTER you do this process - but if you do NOT get service, then the box basically "turns off" all the Tivo functions, except for live pause.
And (AGAIN) - if you are NOT signing up for (new) service, Tivo CANNOT get a year's commitment of service out of you, IF you did NOT sign up for it in the first place - get it???
Read the other replies here & go over to the tivocommunity & it will bear this out...