I was sceptical before attempting HD movies.
Intel Atom 330 is able to handle HD playback fine, while folks on web dont feel so.
I downloaded some HD movies from net and played back -both the 720p and 1080p variants. Both play smooth and CPU utilisation doesnt shoot up. Not sure if I am missing anything...I am running them on a TFT screen set at 1024x768 usng onboard 945GMA.
Someone please let me know if things change when you run it through HDMI.
PS: upgraded Windows XP SP3 and system started rebooting yest night. Did a system restore and things are back fine. Good news is that the ADMTek wireless card is able to connect, however only if the antenna is in line of sight. Not bad anyway. Havent been able to configure it yet in Linux, maybe tonight!