According to this thread on the doom9 forums a person called Muslix64 has developed a small application called BackupHDDVD which can decrypt an AACS protected movie.

Now, this is a forum, and I haven’t tested the tool myself, so take this with a grain of salt until it’s widely confirmed. But if it’s true, it seems that breaking HD-DVD encryption took just 8 days and was actually quite easy to do.

People who just want to watch DRM-free movies : Movie Industry = 1:0.