Sony has been publically stating that MPEG2 is better than VC1 and the tools are better. I think Sony counted on getting DL BD discs working by now, but even if they did, their 50GB capacity would about equal the 30GB capacity of HD-DVD DL discs since HD-DVD is using VC1.
I doubt Sony will change to VC1, and they will probably continue using MPEG2 even while still using SL BD discs. Why do you think BB stopped using the actual movies to show off the Sasmung player? The demo still looks bad IMO, but they are most likely using bitrates higher than what REAL WORLD bitrates can be with actual movies.
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Denon AVR-887
Klipsch RP-5 Pwred Towers (mains) (525 watts peak each 12"Subs)
All Klipsch RC-25(ctr),(2)SS1(surr),(2)SS1(rearSurr)
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For SACD/DVD-A Samsung HD-841
Panny 50pz80u plasma SETTINGS
RCA HD50LPW162 50"DLP w/HD2+
SA 3250HD
47" LCD+Yamaha5790+HD-A1(bedroom)
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Game room with Onkyo receiver & B&W Speakers
The_Cable_Game
Take the high ground and be happier 
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