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Okay that is ultra-lame.
If you are going to get an HD DVD player to watch HD DVD movies, you will apparently have to watch movies via the component outs of the 360.
Since there is no mention of HDMI outputs on the drive, this drive is obsolete as soon as the ICTs are enforced by studios.
The drive looks like an external DVD burner.
I would be interested to see if it works on a regular Windows PC. At least I could use my HTPC to watch HD DVD movies via DVI.