to be more accurate, H264 should be called as MPEG4 , part 10, a latest technology under MPEG4 and different from previous MPEG4.
i agree we have to wait till the "real" HD disc to be released before we can make any final conclusion.... but when? and don forget, H.264 has been ratified as mandatory in both the HD-DVD and Blu-ray specifications for High Definition DVD.
technically and practically, the MPEG4, part 10 really does a better "video compression" than MPEG2, in term of size and without sacrifire the image quality, a statement or comparision of "put a DVD movie into a cd" just does not make any sense here...you are looking backward...
but anyway, it's still a very long road ahead before anything HD disc comes into our house, what will it really be? just wait and see...
wanna see the real 1080P image, just go to the website, download the files and enjoy them, make sure your hardware support them...yes, you need a good machine to perform the best...if you experience any problem or bad quality, maybe you need to upgrade your machine, nothing to do with the format..