Re: Spooky action != Information
> (2) the chips would have a little switch which would allow you to flip their colors between red and blue,
> and (3) if someone flipped the switch on one, the other would simultaneously change to the opposite color,
> thus allowing a FTL morse code. So we've been given the wrong idea of what entanglement means?
This is basically where it's wrong. The chips are in a quantum superposition of red and blue, and when you look at the chip it will be one or the other, but it's 50% either way. If you see red you know that the other guy will have the blue one, but since you can't choose which colour it is, you haven't send any information to the other end.
There are some ways of rigging it so you can affect the outcome, but they all require you to have a side-channel communication mechanism which operates on normal classical mechanisms so can't transmit faster than light.
Imagine that you had a machine which when used would code the information, transmit it via entanglement mechanisms and give you the decoding key. The person at the other end can record the data which has travelled faster than light, but they can't do anything to extract the information without the decoding key. There is no way to transmit the decoding key to you faster than light, so in essence you haven't transmitted the information faster than light.