yes both can.
btw, it's Blu-ray.
and it's better than hd dvd for few reason. blu-ray has finally caught up and has more studios but only thing is that it's expensive. price will drop soon if you wait or get ps3 which is best deal in the market and upgradable to profile 2.0. but really, even if you have profile 1.0, you can STILL watch blu-ray movies that has 1.1 or 2.0 features, only that you can't access them.