I have used Vudu on the PS3 before, but due to the PS3's awful wireless receiver, I didn't have a good experience with it.

Recently, we rented "Underworld: Awakening" on HD (720p) mode via a free credit on a Vudu-enabled Wal-Mart Bluray player, and I have to say: that was a great experience. Video image looks crisp, video playback was instant, and there were no buffering. The kicker was that this was done over wifi!

I was so impressed that I am going to continue to put all my eggs into the Vudu basket, simply because I have the most digital movies on that locker. This only increased when I "linked" my UltraViolet (that new awful service) account to it - so now I can also play UV movies via Vudu.

What are my thoughts on digitally renting movies ? It's nice and convenient, but you don't often get all the nice thing about renting a disc: subtitles, audio commentaries, special features, etc. The cost for HD ($5) remains the same price as renting a physical disc. I don't know if I'll be renting a lot of movies, but if I have a guest over or a special occasion, we might break out the Vudu again!

PS, the best deal is to buy a Bluray with a free Vudu or UV code. Owning or buying a digital movie on Vudu is just as expensive (if not more) than buying the actual disc with the "free" code.