DMX Retransmitter

I am working on a project where I need to sample an incoming DMX stream, and then send it out onto a new stream having altered the data. The application is to run some LED strings where each LED requires three channels. For this application I don't need such fine control and would like to be able to use three channels as opposed to 96 for each 32 LED string.

There seems to be excellent code examples for both transmit and receive, but I can't tell if they will run well together. I have seen a commercial unit that does this using 2 PIC chips that appear to pass the DMX data via IO - have 8 lines run between the two chips with one wired to receive circuit and one wired to transmit circuit.

Any thoughts is one Arduino is up to the task. Anyone done something like this?

I tried posting this in the hardware forum, but didn't seem to get much feedback. Thought there might be more knowledge in the software area as this really becomes a coding challenge. Thanks for any feedback?