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Originally Posted by piratehunter
Where did you hear that? When I saw the film in the theatre, it looked exactly the same as it does on HD-DVD. The opening shot was the only bit that had excessive, intentional grain. 
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True thats where the heavy grain was, but the movie is a very slight film grain going on all the time, which is true to it's low budget nature. I did not actually see it in theaters, so if you did and say you saw no grain theatrically, then this might be due to the Mpeg4 compression used.