I learned a lot from here:
http://www.electronics-tutorials.ws/index.html
The PeX operates as an electronic switch. The sound board sends a small signal, and then the PeX lets the full power of the battery pack flow to the FoC LED. The higher end boards have a few PeX built in, as you have read. This eliminates the need to buy them separately. The CeX is a more advanced type of PeX, and it allows for controlling the current output (while the PeX is just on/off).
If you're using the PC or the CF sound board, I don't recommend trying to do the single-cell hack on your first board. If you have a lot of experience soldering small components already, then feel free to do so. If you're a novice solderer, I would plan on using a 7.4v li-ion pack instead. These boards are a LOT smaller than they look in pictures.
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