I just purchased Cloverfield, and it is indeed using the Anamorphic encoding on the 640x480 standard to yield 853x480 actual pixels. I am very happy that the quality is now at least on par with DVD basically, but Apple needs to add AC-3 Surround Sound as well into the SD movies. Also, it would be nice if Apple added some type of Folder system to the movies, so that way, you can have a "Cloverfield" folder, with the movie and supplemental materials all in it. That, and maybe a way to have all the same movie with sequels inside of a given folder as well. Kind of like how there are artists and albums in the music section. HD movies for purchase would be a nice addition too. This is a step in the right direction.