Tonight I purchased, downloaded, and watched V for Vendetta on my Xbox 360 using Xbox Live's new movie rental service I blogged about a few weeks ago.
I purchased the high definition (720p) version of the film and wandered away for a few hours while the download started. A few hours later, I returned and started to watch as the movie continued to download (the HD version was over 6GB, so it took awhile even over my "12 mbps" Comcast cable modem connection).
The movie quality (and the movie itself) were awesome. There's limit-less room for innovation in this space, and I'm excited to see what Microsoft and its competitors bust out with next.
Unfortunately, at a whopping $6 for a 24 hour rental, I don't think I'll be watching any more movies on my Xbox 360 soon (the 720p version was 480 Microsoft points - $6; the lower quality 480p version was 320 Microsoft points - $4; the 'net is brewing with interesting opinions about Microsoft's points system).