are you referring to HD over component or this:
http://www.beyond3d.com/forum/showpost.php?p=833903&postcount=34
I dont even know what that is! I was referring to Dolby TrueHD audio which is on some HD-DVD and BR discs. It is lossless compression and requires more bandwidth than what is avilable over optical SPDIF. The only ways to transmit it are over 6 analog cables or over HDMI, neither of which the 360 is currently configured to handle. Good find on the mystery chip btw! I wonder what it is...