Yes, you’ve got it right.
L 0 7: $ 1 calls script 1 eight times. Eight in this case is the total or maximum number of kit pieces or trigger outputs. Each time we call script 1, it is evaluating a different bit of the value in the same pattern location. If that bit is set, we send a pulse to the corresponding output which triggers that kit piece.
So, yes, using only Teletype you max out at 4 (although you could potentially go up to 8 with a little extra code by using the CV ports to send triggers like I showed in Episode 1). Or if you had ansible connected in teletype mode, you could use the script as is and ansible’s 4 digital outs would respond to TR.P 5-8. Or with a little extra code you could also use TXo for 4 additional outs.