How big a SD card has this thing got again? Reason I ask is I have two TiVo's at home and a one hour high definition show usually 5-7 gb long. So a movie would run probably at least 15 gb in 720p HD.
If you got the space I guess it won't be a problem, but if anyone is seriously thinking that you can stream one of these movies in from Netflix or Amazon, I think you better think again. You probably will have to download the movie and then play it. That's with a work around.
And if you're going to end up using a computer anyway why not just download the darn thing right into the computer and not bother with the Droid?
If you are streaming, size doesn't matter since you wouldn't have the whole video on your phone at one time. That being said, it comes with 24gigs of storage and HD videos from the net tend to be around 4gig for 2 hours of 720p.