I bought an Xbox 360 primarily for the HD-DVD. While it looks great (although I can only get 1080i out of it since I don't have a receiver capable of upscaling the signal to 1080p with an HDMI out), the audio sucks ass. I'm an audiophile, and, given the choice, I'd still choose buying a film on standard def DVD versus its HD-DVD counterpart, given my Xbox HD-DVD player's audio shortcomings.
Various whispers on various forums tell of a mythical March update to fix this problem, but March is near over, and my crappy King Kong HD-DVD audio still sounds like it's coming from a Bose wave radio playing in my neighbor's backyard. Sorry about the tangent, but does anyone else feel my pain?