It's like a DM800HD, but no support for internal SATA hard disk, but it does have a faster CPU 400 Mhz.
No commando image will not work on a DM500HD,commando image has been ported to DM500S E1 box, not the DM500HD E2 box.
As far as DM500HD clones go, they have only very recently appeared on websites for chineese suppliers...so not much is known about them...probably better to leave them alone for a while and wait and see if they are any good.
Better of getting a DM800HD Pro Rev M Tuner clone for now, if you need a box quickly.
There are also fake DM500HD clones called the Dreamer 500HD that have been dong the rounds, these are not actual clones...they use a NXP chipset (similar to Technomate TM800HD) they do not run Dreambox code or images, and you can use only the clone manufacturers standard image, the case looks like a legitimate Dm500HD,