Thomson has announced that a number of top HD DVD manufacturers have decided to implement their new Film Grain Technology. Here's part of their press release:
Thomson (Euronext:18453) (NYSE:TMS - News) announced that leading consumer electronics, software and technology companies are implementing its Film Grain Technology(TM). Developed by Thomson's Technology division in collaboration with its Technicolor business, Film Grain Technology was recently adopted as a Society of Motion Picture and Television Engineers (SMPTE) registered disclosure document. Consumer electronics giants Toshiba and RCA; technology innovators Broadcom, Sigma Designs, Horizon Semiconductors and NVIDIA; and software leaders Microsoft and Sonic Solutions are set to deploy Film Grain Technology, with two Toshiba HD DVD players, an RCA HD DVD player and a Broadcom IC decoder now entering the marketplace...

..The first tool of its kind formally documented in cooperation with SMPTE, DVD Forum selected Film Grain Technology for mandatory inclusion in HD DVD(TM) products. The technology allows compressed motion pictures to be delivered more efficiently and improves their visual quality. It enables film grain that is extracted before content is compressed to be faithfully re-created during playback.
I can't say I know too many people that would want their HD DVD movies to look old and grainy but whatever floats your boat. If you'd like to read more, Thomson's entire press release can be found here.