I did some more messing around with the Media Player now that the Video Service is up and I am still not sure how in the hell they are pulling some of this stuff off. In the Settings Menu there is an option called "Auto Download" and the suggest that it be on the "on" position. The description says "To watch recommended titles immediately after purchasing, please set to the "ON". Otherwise, you will wait for the title to download after purchasing. Only recommended content is automatically downloaded.".
When going through the movies, there is nothing that indicates which movie is considered "recommended". I first thought it was the movies listed as "Featured" but that is not the case. What I found was that clicking on any movie it will come up as "Purchase" or "Download & Purchase". Ones that say "Purchase" are the recommended content and those apparently are pre-download to your player. It is the same for a preview. Most movies say "Play Preview" but some say "Download Preview".
The thing is, there are a lot of movies that have the designation "Purchase" which means they are already downloaded, but the memory footprint of how much memory you have used does not add up. I downloaded Philadelphia and prior to doing this my HDD showed I had 610gb of used space. Philadelphia was showing "Purchase" only, so based on above it should have already been downloaded. As soon as I hit purchase and it processed the payment it said it was ready to watch. I then immediately checked the used space and it increased by about 44gb to 654gb used. I then checked the download speed and it was not downloading anything...the movie just took up 44gb of more space but nothing downloaded???
I am not sure how they are doing this. I did notice that the amount of space the is reserved for "System" reduced. It is represented on a colored bar graph where it shows in one color how much space is used for "System" and the other color is for the "user" amount of space used. After I purchased the movie, the System space part of the graph reduced. So it can be that it downloads and places these movies in that "system" space, but the odd thing is there are a lot of movies that are flagged as "purchase" instead of "purchase and download" and all of them combined would take a lot more space than what is showing up in the settings menu.
Regardless, it is nice to be able to purchase select movies and they be immediately available. They do need to flag them some how from the main menu so you know which ones are recommended without having to click on each one to see if it says "Purchase" or "Purchase and Download".