I haven't really explored this idea but during testing I generated a
-5dBm 125MHz signal and fed it into the IF port. At the RF port I saw
about -15dBm 25MHz. Theory and practice concur so this is a viable
idea.
Using a single Upconverter for transmit and receive would require
hardware at IF to switch between a transmitter and receiver. A switch
at RF between PA and receive would also be needed. For the
transmitter it might be possible to repurpose a simple FM
transmitter. If one could be modified to support beyond 108MHz it
would allow broadcasting on many amateur bands. There are many simple
FM transmitters out there for car audio and MP3 players, etc.
The basic idea: Cheap USB Audio FM Transmitter at 107-107.3MHz -->
Upconverter in reverse --> 7MHz Bandpass Filter --> Power Amplifier --
> 7MHz (40m Band) Antenna + License == Modest Cost SDR Transmitter
I recommend asking this question on a bigger forum such as Ultra-
Cheap-SDR:
http://groups.google.com/forum/#!forum/ultra-cheap-sdr