I am thinking of encoding my HD in particular to my media centre in 720p format (as I'm intending to connect it to a 720p projector)...
...I've noticed other enthusiasts encoding in .264/mkv down to typical sizes of 4gb or 8gb (presumably so you have the option of backing up the encodes to DVD-R or DVD-DL), or bigger.
If anyone has general experience with the quality of encoding to say 4gb or 8gb, I'm really interested in comments on whether the original quality of the HD-DVD is well-preserved; or if it introduces noticeable compression differences.
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