While great news for 360 owners(your HD library is going to be the largest out there - besides the few HD DVD + Blu-Ray player owners) this is somewhat of a blow to the HD DVD camp, if true, but I wonder if it will have the same issues as the HD DVD player over the "Elite's" HDMI interface. The HDMI standard cites the following: All HD DVD players are required to decode linear (uncompressed) PCM, Dolby Digital AC-3, Dolby Digital EX, DTS, Dolby Digital Plus and Dolby TrueHD. From what I understand the Elite is able to decode lossless audio but is unable to output LPCM and therefore either passes it as 2 channel pcm or dumbs it down to DD 5.1 640 Kbps. The culprit appears to be an internal bottleneck which restricts bandwidth to HDMI. IF, and I know it is a big if......Universal finally decides to back Blu-Ray, the war may be all but over.