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I had some friends over and showed them HD DVD/ BRD and DVD via the Kaleidescape and none felt the HD sources were vastly superior. Note- this is on a 3+ year old 1280x720 1 chip DLP. I am convinced of the technical superiority of these formats but I am not convinced of the commercial viability.
I think that is indeed a projector or calibration issue. Both HD DVD and BD completely smoke DVD when it comes to quality. There is no way I could ever go back to DVD. Even the best looking DVDs look like sh** compared to HD DVD and BD.
HD broadcasts were already much better than DVD, but the new formats are a new level.

I know many people will not like this example, because they don't understand how film is supposed to look, but pop in Sleepy Hollow any watch it. That transfer is simply beautiful and probably some of the best quality we'll ever see until we get 4k, 4:4:4 sources and projectors. And 4k scans from film for that matter...


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Btw- I watched this HD DVD last night- Equilibrium. Its a kind of poor mans Matrix. Some solid Hollywood names for what looks like a Japanese market release. I found the image to be very good and the sound to be also very good- not the best surround- but still very good.
Funny you think that this one looks pretty good, since this was one of the earlier mpeg4-AVC releases which doesn't look that good at all. I think with one of the latest encoders or VC-1 used instead it could have looked much better.

- Stephan