I've already purchased a Toshiba HD-DVD player and have a collection of 15 HD-DVD titles so my comments may appear somewhat biased, but I really have no loyalties to either camp. I am only loyal to the best picture I can get.
Some comments:
1. The Toshiba HD-DVD player is really a PC with a Pentium-4 running Linux. It throws a fantastic picture with both HD-DVD and plain old DVD. In fact, it does such a good job with plain old DVD that I've stopped using my Camelot RoundTable ($3500 DVD player).
2. I'm using a DLP front projector, the Samsung 710AE with 1280x720 panel resolution, to project a 120-inch picture. The result is absolutely stunning. A fluid and seamless picture that I've been longing for for years. The Samsung has fantastic color calibration and a wonderful scaler.
3. Yes it's new technology and there's a format war, but who cares (well, I do care, but not too much). I'm thoroughly enjoying high-def movies, the player is cheap, and the movies are very decently priced at Amazon (plus 10% discount for 1 year).
4. Blu-Ray has an environmental advantage. The manufacturing process is completely green. It uses one toxic chemical, but that chemical is fully recycled. Standard DVD uses several toxic chemicals, many of which are not recycled.
5. Both formats have region codes like DVD, but BluRay has fewer (and thus bigger) regions. I believe BluRay has only 3 regions. HD-DVD (I think) has 6.
6. BluRay can make use of VC-1 and many studios may do just that in the future. Currently available titles, however, are using MPEG-2.
So again I don't care too much about the format war. I'm holding off of BluRay until good low-cost players and better-encoded titles appear on the market. And I'm having a blast with HD-DVD.