Interesting article...

Universal Pictures U.K., the British arm of NBC Universal's home entertainment division will use Peter Jackson's "King Kong" to launch a groundbreaking new broadband movie distribution service with U.K. rentals-by-post operator LOVEFiLM...

Uni U.K. bows download arm with 'Kong' bid (http://www.hollywoodreporter.com/thr/article_display.jsp?vnu_content_id=1002235568)

filmy

It makes no mention of the resolution or codec of the downloaded video. All it says is:

"LOVEFiLM CEO Mark Livingstone said an average movie will take about 40 minutes to an hour to download in a 2MB broadband household, but that wait is expected to shrink rapidly."

200k/sec * 60sec * 40min = 480M so we must be talking about Mpeg-4.

Thanks to the MPAA, we'll probably never see this service in the USA.