What do you get?
For $200, you get the HD DVD player, the cables you need to hook it up, a swanky remote control, and a copy of King Kong. Not bad.
Why would anyone even want to upgrade?
The first thing to think about is: do you have an HDTV? That's an absolute requirement. Regular DVDs look great on standard definition TVs. But the resolution upgrade you gain from HDTV begins to reveal the limitations of current DVDs, which were designed over ten years ago, and made to display their images on standard definition displays. Basically: buy a really nice TV, and DVDs look, well... bad.
How do you set this thing up?
Microsoft's HD DVD player plugs into the 360 via a USB cable. If you use the Wireless Networking Adapter for Wi-Fi, you'll know there's a USB port on the back of the unit. That's where you should plug in the HD DVD player. To make up for it, the new drive has a clip for the Wi-Fi adapter and two extra USB ports. You also need the latest Dashboard update for the player to work.