This is a very good idea .
Some may laugh at it, but what you see is the sucessor of the 35 euro chinese dvdplayers .
It is completely based on proven existing technology . The DVD is rotating faster ( prob x4 ) , a new decoder chip and new software , and thats all.
The dvd’s can be produced on existing lines. 
This can be the winner in China and India , and why not in other countries . They can get the distribution rights for most movies in those countries .
So ,if you live elsewhere , its possible that ( for the beginning ) you have to order your movies in one of those countries .
It starts at 199 USD ( research cost money ) , but who doest want to try it out at 75 USD and with movies for 10 USD ?

Yes, they have Peter Jackson’s “Lord of the Rings” trilogy.  It’s released through the ICON distributor currently available in Oceana and Eastern Europe.

I would say this format is a bit to late.  With everything going on between Blu-ray and HD-DVD I really don’t think that the stuios and the consumer market is going to allow a new format war when the existing format war is gettting ready to end.  I don’t think you will hear much from these guys in the future.

A little more information about Versatile Multilayer Disc (VMD)

HD VMD is a true HD format with 1920 x 1080i/p resolution, up to 40 Mbps bit rate playback, DVD up-scaling so users can watch their existing DVD collection and achieve premium picture quality through their HD TV monitors. The HD VMD player is suitable for playback on all HD-capable display devices and will support existing optical disc formats: CD, DVD (DVD 5 & DVD 9). HD VMD players also feature Advanced Encryption Standard (AES) and all region codes for greater film viewing flexibility.

More information about the actual disc can be seen here.

More information about New Media Enterprises (NME) can be seen here.

Looks like it’s ‘Lord of War, Lord of the rings: Fellowship, Pulp Fiction, Hostage, and Apocalypto’