Matt90GT - Don't know where your theory came from, but your info isn't accurate. Catalytic converters act as catalysts to support/encourage further oxidation reactions which continue in the exhaust system -- after the initial oxidation reaction (combustion) occurs in the combustion chamber. The idea is to provide the right conditions so that harmful emissions from the initial combustion process - HC, CO and NOx can continue to react in an oxygen-rich environment and be broken down into more harmless emissions - H2O, CO2 and non-harmful oxides of nitrogen. Since most of the oxygen present in the combustion chamber gets used during combustion, more oxygen has to be introduced after the combustion chamber. That's what the air pump does. The diverter valves decide based on the computer's prodding whether to bypass the air (sometimes it's not needed), inject it into the exhaust ports at the head, or put it directly into the converter. It has absolutely nothing to do with 'diluting' the emissions.