The tech dept opted not to use a lossless audio format (maybe because of the lack of space. I can imagine if they would've included a lossless audio format for the movie, they might've had to split the movie onto 2 disks...something that could be done easily with Blur-ray). That said, it's a shame the HD-DVD release of Transformers won't have 'Dolby True-HD' or 'DTS-HD' audio (and not that it's not capable of doing so).
From the titles I have seen so far in both the Blu-ray and HD-DVD camp (MI:3, Superman Returns, and 300) the video seems the same, but the interactive menus look slightly better on the HD-DVD side. But, the audio slightly seems a bit clearer on the Blu-ray side. This is not an endorsement of any kind, just an observation.
On a side note: I think lossless audio or the lack thereof won't be a determining factor in the DVD Wars. That's not to say it shouldn't be included in the titles themselves.




, and for the guys that get picky with their codecs (lol) it's a high-bitrate AVC encode, so there, also the DD+ track was encoded at 1.5mbps, so I'm not worried about that at all, I'm sure this will be one of the best Hi-Def releases to date, demo material all the way. 

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