Thanks for the clarification Ced. So I know that H.264 is supported by BD and HD-DVD hardware but is DivX-HD? I don't see it in the hardware specs. I'm also interested in Dfeyeant1's claims that H.264 is superior to VC-1 and would really like to see discs masterd with this so I can see for myself. I hope he gives us a heads up on thier releases.. I've also been reading some comments about the CBR MPEG2 encoded D-VHS tapes (at 28mbps but at 720p or 1080i only) used in D-Theater. This encoding they claim is superior to Sony/BD's VBR MPEG2 and takes up less space.