A novel advanced set top terminal capable of digital decompression, menu generation, interactivity and other advanced functional capabilities for use in a television program delivery system is described. The invention relates to methods and apparatus for upgrading existing set top terminals to provide menu generation capability and advanced functional capabilities. The invention is particularly useful in television program delivery systems with hundreds of channels of programming, providing (i) menu driven program selection through the addition of an upgrade module or menu generation card and (ii) advanced functional capabilities using a set of hardware upgrades and/or an expansion card. Specifically, the invention is an upgradeable system that supports advanced set top functionality through the use of internal software, hardware upgrades, an upgrade module and/or expansion cards. The upgraded hardware generally includes a microprocessor, various input/output ports, processing circuitry and memory. The invention results in an upgraded set top terminal that supports: menu generation; picture-on-picture displays; program catalogue services; interactive services; telephone caller identification; digital audio reception; VCR control; HDTV reception; and backyard satellite system interoperability, among other features and capabilities.