What seemed like an end of the year bomb was actually an M80 in disguise.

In an article from Video Business, it had been reported over Christmas that the heretofore unbreakable Advanced Access Content System (AACS), the encryption method for HD-DVD and Blu-ray really wasn't uncrackable after all.

Apparently a Hacker named Muslix64 wrote "a Java-based command-line utility for Windows called BackupHDDVD that allowed him to move unencrypted files containing Full Metal Jacket, Van Helsing, Lara Croft: Tomb Raider and a handful of other movies to his hard drive."

Once the source code was released, everyone began to speculate how the studios might react, however, it turns out that the studios don't have as much reason for concern as previously thought.

First off, the AACS "wasn't really cracked." Secondly, "the compromise of a handful of titles now, while the number of discs and players in the market is still insignificant, provides a low-cost, low-risk opportunity to test how well AACS can respond to being compromised."

It seems that "Muslix64 was using the USB-enabled HD DVD add-on for his Xbox 360 to view HD DVD discs on his PC, using Cyberlink's PowerDVD player software."

Utilizing BackupHDDVD, "he/she was apparently able to retrieve the title-specific decryption keys from the player memory during playback and then feed them into his/her own decryption procedure as outlined in the public documents available on the AACS Licensing Authority Web site."

But the keys were still encrypted so it remains to be scene what sort of real world effect this will have.

Dont't forget to also check out: Full Metal Jacket