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iTunes + AppleTV
The future is now, if you are a mac user. I've done it the legal way several times - both rented movies and bought episodes of TV shows from the iTunes Music Store via my AppleTV.
It works well over a good ADSL2 connection (our connection is a pretty reliable 3-5 Mbps) - there is a short delay - maybe 5-10 minutes - from ordering to being able to play while it buffers enough data to ensure it plays smoothly.
The video looks pretty good on a 42" screen and its a painless experience, very easy to do in typical Apple fashion. One of the advantages of being a Mac household.
However I guess most of the IIS users are PC types and hence won't have access to this.
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