As you would expect MS are denying this latest rumour/leak, they always do. They're continuing to push HD movie downloading is the future.
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Dude, Just for the record, I haven’t had the problem with Customer Support like you have had but I will tell you that I’ve been trying to download teh HD version of V for Vendetta now for 2 days and it’s still chugging along. I have a dedicted 6Mbps DSL line coming into my home (avg. DL speed of 4.5 Mbps) and today i’m still only at 43% downloaded. I’m starting to realize that this server is going to absolutely SUCK unless they can get the speed issue worked out. Oh, and there isn’t an issue with my DSL, I can download other HUGE files much, MUCH faster on my PC than on the XBox.
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2 days of downloading, and he's only got 43% of the movie!
Situation:Terminal » My Xbox Live HD Video Rental Nightmare