Power conditioner / isolation transformer

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I just purchased a couple of power conditioners by "OneAC" (model #MD1170 which I understand is equivalent to PCM750A). When I look inside basically all I see is a big switch, a HUGE transformer, and a small board with some poly caps on it connected to the receptacles. I measured the voltage coming out of my wall and it was ~122.5VAC. Then I measured the VDC and it swung between -0.3 and +0.3. Now when I measure the voltage THROUGH the conditioner I see ~126VAC and a swing between -0.1 and 0.1 VDC. I've got two identical units and they measure the same.

Questions:

1) Huh? I thought this was supposed to regulate the voltage?

2) Do these provide surge protection at all?
 
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