I notice that "Controller" is the term used for the unit you hold in your hands with the joysticks and switches. This has a transmitter, which transmits on a radio frequency around 2.4ghz. It uses pulses with adjustable mark space ratios to "inform" the receiver what the joystick positions are or what the switch positions are. The channels represent the joysticks and switches and are scanned in sequence, the same sequence is presented on the output of the receiver which is inside your flying machine. So whatever you do on your controller, will be presented to the flight controller from the receiver. Now to get more complicated, some receivers in the flying machine can transmit as well. It should be called a "Transceiver". One would want to know certain things like, what direction your machine is facing, how high above the ground it is flying...etc. If you have a Transceiver in your machine and a receiver in your controller, that "Data" can be transmitted back to you, and be displayed on the LCD screen of your controller. I often get very anxious, I cant see the quadcopter, and every movement I make seems to take it further away, but if you knew what direction it is facing...... There is of course another type of transmitter you put into the machine that transmits the cameras picture back to you. Using another little module (OSD) you can superimpose that data ontop of the picture. You will need a receiver for that signal, normally with a display unit. Hope you can see now what goes where? lol