HDMI Supported Audio Formats: WAV, WMA, Ogg Vorbis, MP3, AC-3 Video Playback Formats: MPEG-4, XviD, DivX 5.0, DivX 4.0, MPEG-2, MPEG-1, DivX 3.11, AVI, VOB It won't play .flv, h.263 and h.264 It won't play HD content Who cares when it's got that much space? Apple TV 40GB: £195 Apple TV 160GB: £263.00 I know the argument against common sense. It's that Apple have convinced you to buy their proprietary, DRM based video content that only works on their hardware because of some perceived quality you'd still get by encoding a 2 pass Xvid or MP4 at the roughly the same rate. Just 1 40 minute episode of supernatural ended up nearly 500Mb when I encoded it at 1500Kbps H.264 and 160Kbps AAC. Add all 3 seasons and that 40Gb Apple TV would be next to full. I could encode it at 2000Kbps Xvid or MP4 and 320Kbps mp3, getting equal quality and without scaling it down to 640 x 352 before hand and still have about 11 x the storage of the 40Gb Apple TV left to use at about half the price. full 720 x 576 anamorphic is 2500Kbps with H.264 too. I've not tested any video on my friends' system that was encoded with handbrake but seeing as the 2 codecs are compatible, you should still be able to maintain chapter markers and use AAC audio if you used the MP4 video codec saved as an .mp4 file. A friend of mine has one hooked up to a 32" LCD and the video looks fantastic depending on the original video encoding. The only downside. It seems to be windows only but with an intel mac, it's certainly an option but you could always pay another £30 or so for the 750Gb ScreenPlay Pro and gain 1920 x 1080 video and it claims to be compatible with Mac OS 10.2 or above too but that seems unrealistic to me when the ScreenPlay HD isn't Mac compatible.