It hasn't even been successfully demonstrated that this has created an "in the clear" hacked copy yet. We're a little ahead of the game.
Here's the relevant portion of the text I'm referring to:
We then ran a binary compare against the two. You'd think an unencrypted movie file would have more than just a few hex offsets changed by the unencryption process, but we haven't yet been able to test playing back the files, namely because WinDVD and PowerDVD both totally blow as demos. More shortly.
As best I can tell, all they've done is compared the binaries and proclaimed them different without the ability to play it back.
It is an unsubstantiated claim, and it is possible that AACS hasn't been cracked at all.
According to a post on our favoritest of forums (Doom9) by DRM hacker du jour muslix64, his new BackupHDDVD tool decrypts and dismantles AACS on a Windows PC. Just feed the small utility a crypto key (it comes bundled with keys for a few popular HD DVD titles, with the promise of more on the way), and it'll dump the video right off the disc onto your hard drive, supposedly playable in any HD DVD compatible player.
This is like having an Enigma device and knowing the code key for the day. You have the crypto key you can get the clean output. There's no way of knowing how the key was retrieved and that is one of the most important points.
Another question of mine is how strong is this key? Not asked or answered.
While I'm by no means a cryppie the key strength is one of the key parms for determining how successful a brute force attack will be. Of course it's also possible that the key generation pattern is easily hacked, ie not sufficiently randomized which would lead to a more easily attacked key generation. I'm assuming it wasn't a criminally stupid key generation scheme.
Me, I think it's in the "too soon to tell" category. But it'll be interesting to see how this unfolds.