This whole H.264 AVC vs. MPEG-2 on Blu-Ray debacle is quite funny. I don't remember anyone complaining about MPEG-2 when SONY started shipping Blu-Ray recorders in 2003. Talk about an edge: they have been shipping hardware and blank media for over 2 years now. Even though I prefer HD-DVD's wider support of MPEG-2 profiles and frame sizes, there is no question that Blu-Ray is a reality and HD-DVD is bleeding edge.
http://www.digit-life.com/articles2/blu-ray/

And H.264 advocates can say whatever they want: when it comes to fitting a 2hr feature film in 1080p on a 25 or 50GB disc, the 24Mbits/s average and 34 Mbits/s peak provided by the Blu-Ray 1X format will deliver a stunning HD experience.
http://www.sony.net/SonyInfo/News/Press_Archive/200202/02-0219E/


And here's a list of the initial release of MPEG-2 encoded feature films on Blu-Ray.

Tags: H.264 Blu-Ray HD-DVD mpeg-2 mpeg2