Its way more complicated than that. I dont know the exact details, but my understanding is that when DRM protected audio or video is played back using non-certified secure hardware, then Vista is *required* to degrade the playback quality. By non-certified - that doesnt mean certified by Microsoft, that means certified by whoever regulates HDTV reproduction standards - basically some motion picture industry body.
This I beleive was imposed by the motion picture industry and is a mandatory requirement for implemeting HDTV DRM protection and gaining certification. Apple will have to do the same day as well or get told to piss off by Hollywood.
Both Apple and Microsoft have been involved in trying to resist this in that past.
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