I decided to take advantage of $5 in credit at Amazon.com's Video On Demand store. I settled on the first season of Friday Night Lights in HD since it was only $15 for the whole season. I figured $10 would be a cheap way to try the service out. I decided to download the videos instead of simply streaming them. At 2 gigs a pop, it would take a while to download 22 episodes, so I let them download overnight. I was happy to find out they are WMV files, so streaming to the Xbox 360 would be an exercise in simplicity. I just now confirmed that it works without a hitch. Overall, I'm pretty happy with it. I'll always opt for physical media when I can, but I could see using this for HD downloads of shows that aren't on Blu-ray.

Has anyone else tried it?

Haven't tried Amazon's service. Only Netflix's HD steaming on the PS3. What resolution are their WMVs? Two gigs an ep, is a pretty large size. The TV shows I "find" on the Internet are only just over one gig, and are 720p.

Haven't tried it yet, but glad it worked out for you. Get used to this way of enjoying movies as I feel the next great swing in the movie industry will be switching to downloads over physical inventory. I could be wrong of course, but it seems to make too much sense not to do it.

1280x720, Dolby Digital 5.1 (at least for this show). This is an hour-long show (42 minutes, I should say), so that's why the file sizes are bigger.

I agree, but I do think it will be a very long time (decade or so) before it's adopted by the masses.

That's the pic size, and sound quality of the MKVs I get, but they're AVC instead of VC-1, still one can except about the same quality for the same bitrate between those two codecs. So, Amazon is doing well at 2 GB per 42 minutes.