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I copied this from a source I found when I GOOGLED "How does a court stenographer's machine work".

Transcription Process

A court reporter machine, also called a shorthand machine or stenotype, makes real-time transcription and closed captioning for television possible. Trained users can record more than 300 words a minute. Court reporters achieve these speeds thanks to the shorthand machine's "chorded" keyboard.

The court reporter machine's keyboard resembles piano keys more than a computer or typewriter keyboard. The keys are typically black and unmarked. In order to spell words, word sounds and whole phrases quickly, more than one of the stenotype machine's 22 keys is pressed simultaneously, a process similar to striking chords on a piano. The keyboard contains only some of the alphabet, so combinations of letters are used to replace those that are missing. Several theories exist on how to record certain word sounds. These theories include StenEd and Phoenix, among others.

Phonetic Code
The court reporter machines produce a phonetic code when the keys are pressed. Each line of code relates to a single sound. The reporter's "home position" has the left-hand fingers resting in the spaces along the two main rows to the left of the asterisk key in the center. The left hand records initial consonant sounds. The right-hand fingers lie in a similar position to the right of the asterisk key. They record ending consonant sounds. Vowel sounds are recorded by the thumbs, which strike the four vowel keys on the bottom row. Other beginning and ending sounds have special key combinations that involve both hands.

By combining keystrokes, court reporters are able to record conversations without falling behind. For instance, the word "cat" would be recorded by typing a K (initial consonant sound with the left hand), an A (vowel sound with a thumb) and a T (final consonant sound with the right hand).

The words are recorded on steno paper, which rolls out of the court reporter machine at the speed of one row per "chord." The letters record to the paper in their own row, which matches the stenotype keyboard: STKPWHRAO*EUFRPBLGTSDZ.

Translating
The theories mentioned earlier help standardize translation by computer. Over the years, court reporters and stenographers would often mix theories and create their own keystroke combinations, which made it difficult for other court reporters to read transcripts. Today, computers inside the stenotypes translate the phonetic codes based on a standard dictionary using only one theory. This causes the court reporter to adhere to a single theory when transcribing.

Scopists can be used to edit transcripts and offer translations. Scopists are trained in stenotype theories, punctuation and, oftentimes, formats required in the legal process. Computers have limited the need for scopists and other proofreaders used to ensure accurate transcripts.

Read more: How Do Court Reporter Machines Work? | eHow.com http://www.ehow.com/how-does_4915012_court-reporter-machines-work.html#ixzz21wjv5jua