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http://forum.doom9.org/showthread.php?p=952954#post952954 / http://forum.doom9.org/showthread.php?p=952968#post952968
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News post on the Register: http://www.theregister.com/2007/02/14/aacs_hack/ ...
Forum participants continue to debate the implications of arnezami's handiwork. What's known for sure is that his hack unlocks the encryption used to protect content on every Blu-ray and HD DVD disc released to date. Several participants have downplayed the significance of the discovery, reasoning that it could be undermined in the future if the keys are changed or revoked.
Yeah, uh, I haven't been following the news/details on how the encryption works, so uh... don't ask me. (That's why things have "?" after them - I'm not entirely sure of my terminology or if things really are hacked...)