A hacker known by the alias muslix64 has decrypted the AACS of an HD-DVD, using the Xbox 360 HD-DVD drive This allows you to view the HD-DVD on software using your computer, or back-up the content files, just in case. The hacker also says that you will need a certain encryption keys for each movie. Currently, it is unknown how he even got them in the first place. The source code will be released in January.

The same encryption keys used on the HD-DVD format are similar to those used on Sony’s Blu-Ray format, so this is one step closer to decrypting that, too. Besides having full high definition on the formats, digital rights management was one of the reason for abandoning the DVD format. If both standards are fully cracked, could this mean the end of the format wars? Or could Sony’s offer to talk with Toshiba create a new format that could use an even greater encryption, and offer even better features and quality? It seems that with every new format war, there’s always the same winner: The Pirates. Video of Full Metal Jacket being decrypted after the break.

Read (TeamXbox)