"Sadly it does seem that content will be the problem for early adopters. Most journalists I spoke to were unimpressed with the picture quality and it was clear on most of the titles we saw there was a lot of noise in the picture, visible even from a distance. In some freeze frame shots you clearly see heavy colour compression too. However this wasn't present on all demonstrations and one really showed that if it was done right, the picture quality of Blu-Ray is certainly impressive. "
Read on over here.