This is an article about a change in management at Sony that may explain the company's new flexibility in easing copy protections for HiMD. It also says that Sony is planning a new iPod like device with a hard drive. Maybe it will have optical inputs?

http://www.nytimes.com/2004/04/19/technology/19sony.html?pagewanted=1&th

Yup....Sony had a lot to say about this at the NAB show too, although they didn't have anything to specifically show.

Douglas,
Did they give any details?