A doom9 user by the name of muslix64 has published a Java application that can decrypt AACS encrypted HD content.
He got miffed when he couldn't play HD-DVDs on his PC because his graphics card didn't support HDCP, so like any good programmer, he stuck two fingers up at the "fair use" management and found a way to decrypt it anyway.
It looks like PowerDVD was the key, literally, keeping the title keys in memory. He found them, then used them. Took him 8 days to do.
It's an interesting breakthrough, provided somebody can verify it. The MPAA will be rallying their lawyers as we speak, no doubt. Good luck to muslix64 on that front, then.
Read his post on Doom9, found via The Inquirer.