...Toshiba’s new patch grants the HD DVD players the ability to play back 1080p at 24Hz. But it’s having troubles with 1080p24 playback of any AVC - MPEG4-encoded discs. Users are reporting severe aliasing or jaggies as it’s popularly referred to today. This is the stair stepping effects on the edges of some images.
The symptom does not occur if your HDTV isn’t capable of 24p display, only 1080p24 output is being reported on AVC or MPEG4-encoded discs.
You can see the problem clearly in chapter 5 of the Transformers HD DVD which was encoded in AVC-MPEG4. As the camera simultaneously pans and zooms into Bumblebee, jagged edges and flickering is severe at 1080p24.
The same results were reported of Toshiba’s XA2 firmware update awhile back....