Here's the update from TeamXbox:
As anticipated, Microsoft rolled out today a software update for the Xbox 360 HD DVD player that, among other improvements, improves HD DVD title compatibility and lets you choose the digital audio format you want to output. Here are some of the new features and improvements:
Option for user to select from the following audio output formats via TOSLINK or HDMI:
- Digital Stereo (2 channel PCM)
- Dolby Digital 5.1
- DTS 5.1
- WMA Pro
- Option to enable/disable Night Mode
- Added "Dynamic Range Control" toggle for digital audio output
- Improved HD DVD networking support
- Improved HD DVD title compatibility
- Improved performance with MPEG-4 AVC / H.264
- 1080p via HDMI is supported on the Xbox 360 Elite with HDCP compliant displays Improved parental controls
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