JULY 2008 UPDATE: I’ve recently begun using Plex (aka OSXMBC) and it eats up ANY 1080p material I throw at it. My full review is available here but the short version is a strong recommendation to anyone interested in playing back 1080p on their Mini. It’s amazing.
Until now, my Mac Mini’s limitations haven’t slowed down any HD material I’ve thrown at it. But, admittedly, I’ve never asked for anything beyond 720p playback. I recently began archiving HD material at 1080p however, using the .MKV file compression and I wasn’t sure if my Mac Mini could handle playing it back effectively.

