Last week, Toshiba America let slip that their upcoming HD DVD players would require a firmware update before they could take advantage of some of the format's interactive features. The company is now backpeddling, stating that their first-generation players will support these features, at least those available at launch.
"Toshiba's first HD-DVD players will support the advanced content features called for by HD-DVD," said Junko Furuta, a company spokeswoman. She said the firmware upgrade will come into use when new features that aren't yet part of the interactive system are added.

"While our players will provide support for current HD-DVD advanced content from the start, we anticipate that the industry may add to these capabilities as HD-DVD continues to develop. Toshiba's players can be updated to support future applications and services, which may include downloading supplemental audio and video content, disc-related online shopping and other features yet to be imagined."
Between this and AACS not being finalized, I have a feeling that early adopters are going to be in for a rough ride. If you'd like to read more, the entire article can be found here.