Question: Is this a software implementation of the Lync Room System?  I know Microsoft has released LRS for hardware vendors, (Polycom etc), but a software version of it is of interest to me.

Answer: We're using the lync api to initiate lync in needed modes but once initiated/launched you are in the lync client itself.  Version 2 will be a completely custom UI with no lync visual components.

It is a SOFTWARE using a SDK from MS.   It is completely different than the LRS offering which is more of a configurable package with some customizable elements.