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It's not HD-DVD that's giving the better picture. Both formats use the same video codecs for their disks. What's better is the TRANSFERS, that has nothing to do with the medium itself, but rather the studio that does the transfers.



Not true in all cases. I'm not entirely up to date on this, but the initial Blu Ray discs used the DVD standard MPEG-2 compression, whereas HD-DVD uses the newer VC-1 or MPEG-4. Direct head to head reviews of the same movies, ie, same transfer, found the HD-DVD to be (slightly) superior.
I believe for the second wave of Blu Ray movies , Sony solved their authoring problems, and they now use the newer codecs.