The were showing one of the Lord of the Rings movies in HD (people said it looked good) also people reported that it was coming from Starz HD.
They had 4 channels they were running, but were not flipping channels due to the fact it took about 30 seconds for the MPEG4 to lock on the new channel (MPEG 4 is NOT for people who like to channel surf)
I don't channel surf but that still would be aggravating every time I change channels. I hate to be pessimistic but they will probably in time over compress MPEG4 just like MPEG2 anyway.