It might be possible BUT we have to remember that the xbox360 drive is just an external drive that only READS the HD-DVD whereas all the processing/rendering stuff is done on the xbox360. So looks hard to get a PS3 drive.
Your theory looks quite possible and I hope it comes true. But I support Blu-Ray because of size and capabilities so I also hope that by next years middle or end, HD-DVD disappears. lol
I know this sounds bonkers.....but given that the Xbox 360's add on HD-DVD player uses a USB to connect to the 360, then in theory it may be possible in the future to use the PS3 to play HD-DVDs as well?
With the PS3, it reads VC-1, AAC and MPEG4 as well as MPEG2. Given that you will able to install Linux onto the PS3, then in theory one should be able to download the software necessary to play HD-DVD on the PS3.
Am I nuts or is this theoretically possible?