not only is it HD it's also HP ( High Priced). $499.95 is a lot of moola. Actually, it is more than the basic price I paid for Thor!. Oh, I just hitched up the New speakers to Thor. MS sure made some good improvements to their Media center. I like it. Not so sure about Aero yet. When I think of the resources it requires, I'm not too sure about it. but, hey, it is much much better than my old 8082 or 8088. That goes back a long long time ago. Dinosaurs did still live back then!