Take your Video-out iPod to Blockbuster, drop it in a kiosk dock then download from the local xServe your choice of 50,000 movies. You can rent the movie or buy it and you can even choose the resolution, which may or may not affect the final price. Take the iPod home, drop it in the dock attached to your TV and watch the movie. H.264 decoding takes place in the iPod in hardware.
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