x mani x writes "While the DVD Forum continues quibbling over a new blue-laser based HD-DVD standard, it looks like Microsoft has been busy developing a new video compression method that can show high quality HD video at bitrates similar to current DVD's (between 5-8mbps). Proof, you say? Check out some stunning samples of this cutting edge technology. Myself and many others have watched it and most of us feel this is significantly better looking than MPEG-4/DivX HD video of the same bitrate. This technology is causing some excitement, as the T2: Extreme Edition DVD package will include a DVD containing T2 in HD, compressed with this technology. Anyone with a fast PC will be able to watch T2 in high def, no pricey blue laser player required."