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Originally Posted by dnoyeB 
Are you sure about that? Are you sure its not a lossy compression level? Can you never get XHigh on a TV series originally shot in 720p?
Also, why do you say 5.1 audio is only available for the PS3?
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Am I sure about what, specifically? I'm completely certain about the main points that you quoted: X-High is seen when you're playing titles which are known not to have 1080p encodings and when you're playing titles which (I believe) have 1080p encodings. I'm also certain that the PS3 is now using adaptive bit rate streaming tech (aka "smooth streaming"). All of the old players which don't have ABR streaming will pause for varying amounts of time when bit rate on your connection drops below the speed required for the currently selected encoding to refill their buffers with a lower bit rate encoding. Also, the non-ABR streaming players all take 10+ seconds to start up an HD encoding (if your connection has the required bandwidth); playback of a stream on the PS3 generally starts in 3 seconds after you "press PLAY".
When I talk about "available bandwidth" I mean the bandwidth currently available on your connection to Netflix' servers, which may be only a fraction of the your rated network service speed and which can fluctuate as conditions along the path to the server change.
As for 1080p and 5.1 surround only being available on the PS3, see
this bit posted on Netflix' blog back in October:
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| There is even more good news for PS3 owners: starting today you’ll be able to instantly watch some movies and TV shows in 1080p high definition with Dolby 5.1 channel surround sound. |
Only the PS3 has encodings with digital surround sound; a theory held by myself and others is that those streams with 5.1 also have 1080p encodings.