After I examined A500 service manual and compared video port schematics to CDTV equivalent, noticed that only 4 jumper connections were needed to bypass VideoModule. Now video signal goes thru connector (CN10) to RGB connector (CN1) without card.
Heres pic of this maybe quite useless (to rest of you) mod.-->
http://www.amiga.org/gallery/images/5165/1_VIDEOMOD.jpg
I also read from http://amiga.resource.cx/mod/cdtv.html that "updating from KS1.3 requires special hardware released by third party manufacturers", but mine works fine with KS2.04 and KS3.1, so how come?
Perhaps they mean that the CDTV requires specific versions of 2.04+ that contain the required CDTV file systems (That control the CD Drive) in order to function correctly.
That would be my only guess as to why it would need "Special Hardware" ?
As long as the KS Chips are pin for pin compatible, it makes no difference, apart from the CD File systems etc, much in the same way there are different versions of Kickstart with, or without SCSI.Device to drive internal Hard Drives in the A1200/4000.