Teac 80-8 Dx-8?

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hey guys!
I recently picked up a teac 80-8 with the dx 8. I’m not quite understanding how the bx8 is properly hooked up. It works but I don’t understand how the ins and outs section works.
What’s the difference in plugging into the, in and out vs the encode and decode, what’s the proper way to chain/hook it up?
 
See if this helps :

Yes, that you it did. It makes sense now!
 
I had a similar setup with my old Tascam 38 and a pair of DX-4D dbx units. I had them all wired together running into a Fostex 450 mixer (later a Tascam 688), RCA VHS and Harman Kardon cassette deck. Hooking all that up and having it work on the first click was very exciting.
 
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