Unfortunatly it's been downgraded to 10 Mbps max for H.264 and it won't do profile 5.0 or higher which is what most x264, XviD, ect HD encodes are done in. This will be great for H.264 TV caps and SD stuff, but it looks like WMV is still the only way to get good compressed HD on it.
Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
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