You know, for some odd reason I can't find it on their website under requirments. But I assume, in addition to some hefty processing power required for HD content, you also need a hdcp complient video card and a hdcp complient monitor connected via DVI-D. However, as much as I've studied it, I'm still unclear if the last two would be required if the ICT isn't present on the disc (which I don't think it currently is).
Exactically, the software (when outputting over DVI/HDMI) requires a HDCP compliant link (tv/monitor and video card), if not, the movie will not even run. VGA however does work (for now) intil the ICT flag is enabled!
Yes, I have the 360 drive, and I hooked it up to my pc, then i payed $99.99 for PowerDVD Ultra, just to find out that my 2 GeForce 7950's were HDCP compliant, but my Viewsonic 19 inch widescreen monitor was not. So I am now forced to use a DVI to VGA adapter to watch my HD DVD movies on my computer, and I don't think they look as good as they should. Oh well, at least I can still watch them in 1080i on my plasma using the 360. But now I feel like I wasted another $99.
The pictures are confirmed to be real by MS, however they still claim that they are not planning on shipping the unit on the pictures. "We're always working on prototypes and new technologies and just playing with stuff in Redmond to see what's interesting. ... At the moment, everything you might have seen is just looking at our experimentation back in Redmond, not really a product that we're thinking about announcing," See also http://www.gamespot.com/news/6163965.html?sid=6163965 http://www.1up.com/do/newsStory?cId=3156318