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PS3 software Backwards compatibility patent filed
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I've been part of a Nielsen family before, basically the way it works is they hook up their equipment to every TV in your house, which then reports time that is spent while the TV is on, as well as what the TV is hooked up to... you're required to tell them what is hooked up to inputs, so they can tell if you're on input 1 then you're using a PS2 or whatever. If you change any TV equipment in your house (like adding a new console) you are supposed to tell them about it.
Then, their hardware also has a remote with numbers on it, and each number is assigned to correspond to a member of your household... when they are using the TV, they sign in on the device by pressing their button on the remote.
So, nielsen collects data on what you are watching, when you are watching it, who is watching it, and for how long. From there on it's up to the nielsen family to properly check in/out when using the television.
Sorry about the tangent.