Very nice. I am a huge Linux fan and have been following, with curiosity, the RP. Thanks for posting!
I took the Pi over to the workbench and hooked it to the 42” Vizio that I use as a computer monitor there. (This is where I usually do my freepin) I connected a 1TB USB HD and started playing a 720p mkv file that I made from a blu ray of “2001 A Space Odyssey” results were very nice. See the short video I just posted. For some reason I could not get the captioning to stop....I may actually have to rtfm.
http://www.youtube.com/watch?v=-60d_nIkwcM&feature=youtu.be