Some of the notable new features are as follows:

• BluRay disc structure support. (No decryption support)
• Updated Libraries (x264, ffmpeg)
• SSA Subtitle support. (Including burn-in)MP3 audio now supported in MP4 files (Note: Limited Player compatibility)
• VOBSUB subtitle now supported in MP4 files (Note: Limited Player compatibility)
• Updated Presets for newer devices and better quality
• AC3 encoding support.
• Many Bug Fixes and other small improvements
• Improved DVD Main Feature detection (when using dvdnav)
• Universal audio downmix support (all audio types can be downmixed)
• Point*to*Point encoding (second or frame start and end times)
• Peak framerate option (Capped VFR)

Using a guide from Avsforum.com, I have converted my entire blu-ray library to MKVs using AnyDVD HD, eac3to, and mktools. The video quality is superb and is still 1080p. I have converted all the audio tracks to flac, including TrueHD. Lossless compression!

I installed MediaBrowser on the Windows 7 machine along with the Shark007 codec pack. To my surprise, the whole thing actually worked. No external player, no copy protection, and no crazy sound card just for TrueHD playback.

Using an ATI 4670, the picture looks great and the audio is sent to my Onkyo receiver as LPCM, all over one HDMI cable. 5.1 sound and everything.

I have no idea if this will actually work on an extender but right now I could care less. One thing at a time. Plus I think Divx is working on an MKV solution that will work with extenders.

Now I need to set-up a remote. I got a Harmony 880 that hopefully will do the job. Is this ready for the mainstream? No way. Is it ready for nerds? Absolutely.

$20 for a movie is still too expensive in my opinion. I want to buy movies for less than $10 though Blu-rays are hard to find at the price point.

I recently started buying used movies from Amazon and have found some great deals, like Batman Begins for $6 and The Departed for $10. The prices of used movies fluctuate depending on the seller. The only downside to buying used movies on amazon is the $3 shipping that is charged for each movie. So that Batman Begins movie actually cost me $9 shipped. Still not bad. No taxes either.

Did you know you can search by “used” movies on Amazon? Combine that with sorting by “lowest price” and you can quickly scan for cheap deals. A little digging can help find movies to round out your library. Here is an example search. Happy hunting.

Since this is a “buyer’s guide,” below are some tips for buying Blu-ray movies:

1) Don’t buy kids movies on Blu-ray. Unless you are a big fan of Pixar movies, they look just fine on DVDs. The Cars DVD looked great on my PS3. Plus, you are more likely to watch kids movies on portable players or take them on trips.

2) Never shop on Ebay. You pay too much of a premium for used movies.

3) Never buy movies from a retail chain. Too expensive.

4) Buy used movies from sellers on Amazon.

Overall, I am impressed with the value of the PS3. This is a console that is begging to be connected to a HDTV. The UI looks attractive (especially at 1080p) but sometimes feels cluttered. Quitting games is a bit awkward. You have to hit the PS button and select “Quit Game” from the navigation.

Blu-ray playback looks great and the built-in wireless is a nice touch. I was disappointed to realize that I could not use my Logitech Harmony remote with it since the PS3 only supports Bluetooth remotes. I ended up buying a PS3 remote at Amazon for about $20.

The Playstation Network works well, allowing you to download demos, trailers, and games. Being able to download content in the background is a nice touch. You can play a game while downloading trailers etc. I only wish there were more free games that you could download.

Streaming of media from a computer is awkward, especially if your files are buried several folders down. I can’t see myself using this feature too much. Maybe the experience will improve when I set up my wired network. Right now, it is just too slow.

The system is noisier than I thought it would be, especially with all the criticism the Xbox 360 has gotten for being too loud. Apparently, the PS3 is louder when is laying flat like a CE device. Unfortunately, I do not have the room to “stand it up” in my cabinet.

Last but not least, the games look fantastic but I am surprised by the lack of original titles for the PS3. Most of the major titles are available for the Xbox 360 or even PCs. I am not too interested in playing BioShock on a PS3.

One thing is clear to me about the PS3: it is definitely a computer. From the USB ports to the upgrading of the “operating system,” the PS3 is marginally a plug and play device. For someone who tinkers around with computers, the PS3 was easy to set up but I could see the average consumer struggling to setup the wireless connection and/or upgrading the operating system.

I have not yet downloaded any HD movies from the Playstation Network. When I do, I will post my thoughts.

* Resolve “Enable S/PDIF Out” issue
* Resolve “HDMI output to speaker” issue
* Modify All2HD setting selection to enhance stability
* Expand list of compatible commercial titles
* Enhance compatibility for the following hardware:
VGA Chipset support for Blu-ray Disc® playback on Windows Vista® and XP OS

I have not had time to download this update and check it out but will do so shortly. I am glad to see Corel improving WinDVD 9 to make it a more viable Blu-ray player. Software-based players have come a long way in the last 6 months and hopefully this is another step.

You can rip Blu-ray movies even though they have a ton of content protection that make watching them on a computer difficult, which is especially frustrating for people who simply want to watch their own movies. Even with this content protection, you can rip Blu-ray movies. I am currently using AnyDVD HD as my main tool to rip Blu-ray movies.

Here are the three options to rip Blu-ray movies:

1. AnyDVD HD- This is the easiest way of ripping movies and has become the standard for Blu-ray ripping. Slysoft is constantly updating AnyDVD HD to combat the ever changing digital rights management schemes that are implemented in Blu-ray disks. Download a free trial version to check it out. This is the method I recommend.
2. DVDFab HD Decryptor - This software copies entire DVD movie to hard disk, and removes all the protections (CSS, RC, RCE, APS, UOPs and Sony ARccOS) while copying. It also comes with full HD-DVD and Blu-Ray support (Removes AACS).  HD Decrypter is free while the full featured DVDFab Blu-ray to Blu-ray is available here.
3. Running Linux on a PS3. This is a much more complicated way of ripping Blu-ray movies. Basically, you have to install Linux on your Playstation 3. Once you have Linux running, you can then rip the Blu-ray disc. This option is for the hardcore geek.

Over the last year, the clear leader in Blu-ray and HD-DVD playback on a computer has been Cyberlink’s PowerDVD Ultra. Finally, this month someone else has thrown their hat into the HD realm: Arcsoft with their release of TotalMedia Theatre. According to Arcsoft, TotalMedia Theatre supports Blu-ray discs, AVCHDs, CDs, VCDs, and a variety of multimedia files, including QuickTime, RealPlayer, DVR-MS, WMV HD, and H.264 HD formats.

While the Vista Media Center still does not offer native Blu-ray and HD-DVD support, TotalMedia Theatre does include a plug-in that integrates into Media Center. From Arcsoft’s website:

The program comes with a Windows Media Center Edition plug-in built right in! The plug-in provides a “10 foot” user experience: big buttons and compatibility with your remote control mean you can use TotalMedia Theatre to watch your HD DVD and Blu-ray movies from the comfort of your couch.

The plug-in allows users to launch movies from the MCE interface, though it does launch a non-Media Center video player.

A quick look over at AVSForums indicates that TotalMedia Theatre has potential but is still a work in progress. Here are some of the issues identified:

• Lack of BD+ support
• High CPU usage
• Audio issues with X-Fi based sound cards

TotalMedia Theatre is something you should keep an eye on if you are looking for Blu-ray and HD-DVD playback. However, you might want to wait for some of its kinks to be worked out.

Although Microsoft is a big supporter of the HD-DVD standard, they left out native support in Vista for high definition DVDs. Right now, the only way to watch HD-DVD and Blu-ray movies is through third-party applications.

To watch high definition movies, a couple of software options exist with Cyberlink PowerDVD being you best bet (check out the thread over at AVSForum.com). With the price of the Xbox 360 HD-DVD add-on falling to around $170, HD movies have become more affordable. The HD-DVD add-on can be hooked into a computer but you still need software to actually watch the movies. Cyberlink PowerDVD Ultra would be a perfect compliment.

One thing to keep in mind: Cyberlink has not integrated PowerDVD fully into Media Center as a plugin. You can launch it from within the Media Center interface, but PowerDVD will launch as an entirely separate program. This should improve in the not too distant future.

SlySoft has just released the latest AnyDVD version which beats the latest 4th generation HD-DVD and Blu-ray copy protection MKBv4, which was lauded as being unbreakable.

From Slysoft’s press release:

All that AACS-LA has to offer now is BD+, but even that is on the verge of being circumvented and a release is expected by the end of this year. James Wong, Head of development at SlySoft: “We already found a way to crack BD+ and we have just turned to fine-tuning…”

I honestly do not see a point in time when people are downloading enough HD-DVDs and Blu-ray discs to make an impact the overall market. It makes me wonder what the point is in all this DRM. Especially if someone is able to make a profit off of providing software that cracks it.

Due to licensing agreements, Blu-ray exclusive movies in North America are being sold as HD-DVDs in other parts of the world, and vice versa. Three online stores offer U.S. customers the ability to buy HD-DVD versions of Blu-ray movies:

1. Amazon.co.uk - Some movies not yet out in HD-DVD like Harry Potter and Blu-ray only titles in the U.S. like Basic Instinct are available as HD-DVDs.
2. XploitedCinema.com - The first Fantastic 4 movie is available in HD-DVD format for a slight premium of $35.95.
3. HD-Addicts.com

The Wall Street Journal offers this explanation for this odd distribution practice:

The loophole lies in distribution. Studios often farm out DVD sales in other countries to a patchwork of companies with expertise in those markets. Those partner companies sometimes have arrangements to use a high-definition format different from that of the U.S. studio.

If you are looking for that one elusive movie in either HD-DVD or Blu-ray format not available in the U.S., it is worth trying one of the sites listed above.