VC-1 got a major upgrade with Shrek III encoding as mentioned here
http://www.satelliteguys.us/hd-dvd-forum/114542-shrek-3-using-new-vc-1-encoder.html
An even bigger upgrade is planned for the beginning of 2008.
Speculation mounts that it might be the long awaited "dynamux" - dynamic allocation of bandwidth between the audio and video streams. This might require some changes in the workflow since now audio and video encoding is done by different crews...
Diogen.
OH YES!! Anything that can make ALL HIGH DEFINITION better i am for it!:up