Blu-Ray uses MPEG-2, VC-1, and AVC MPEG-4 (which kicks the crap out of VC-1) and the 3 layer HD DVD that is spoken of is, in fact, not happening. It should also be pointed out here that the ONLY HD DVD-exclusive studio is Universal. Every other studio out there is either format-neutral or Blu-Ray exclusive. HD DVD being the "cheaper" format doesn't hold water, either. The new $499 SONY stand-alone player is the same price as the cheapest 1080p output-capable HD DVD player (something ALL Blu-Ray players have done since the beginning). Now, I know 1080i deinterlaced to 1080p through an HDTV is "effectively" the same thing to some, but for my money, it's sure nice to know that I'm passing a NATIVE 1080p signal through to my set with no scaling being performed in the interim. Blu-Ray software is also consistently a few dollars cheaper (especially if the HD DVD version is a combo-format disc like Superman Returns or The Departed). Considering the fact that software is a continuous expense and hardware is a one-time expense, Blu-Ray ends up cheaper in the long run. Couple that with the overwhelming studio support Blu-Ray has, its consistent 2 to 1 software sales lead over HD DVD, and the similarly overwhelming sales advantage it enjoys in hardware when PS3 units are included in the data (I personally bought mine for Blu-Ray viewing though I'm a supposedly non-existent demographic), and it's a no-brainer. Just my two cents.