I bought this the other day off CL thinking it conected to the hot water line, but it is an independant dispencer, and a nice one. I'm selling it for what I paid. The pictures show how it connects and I will leave it that way as the instructions (included) are confusing. The filter is new. In the picture, the one line that is not connected hooks up to the COLD water side.
I did hook it up and it worked fine. There was an occasional drip from the dispencer into the sink, but it might be normal as it seems to do it when the thing is heating.