AACS is encryption, Its done with a well known scheme that the author's code simply follows. The issue is that the disc decryption keys for each disc must be know. These keys are themselves encrypted on the HD-DVD and must be decrypted by the playing application before use. Each HD DVD Playing applications have their own keys to decrypt the disc encryption keys off of the disc. The issue is that someone has found a way to steal the decrypted disc encryption keys out of some player which is probably not terrably good at hiding them once it decrypts them. I believe AACS even has multiple player keys so they can disable whatever app is out there that is easy to steal keys from.
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Not Cracked like DVD's, he's just decrypting it!
AACS is encryption, Its done with a well known scheme that the author's code simply follows. The issue is that the disc decryption keys for each disc must be know. These keys are themselves encrypted on the HD-DVD and must be decrypted by the playing application before use. Each HD DVD Playing applications have their own keys to decrypt the disc encryption keys off of the disc. The issue is that someone has found a way to steal the decrypted disc encryption keys out of some player which is probably not terrably good at hiding them once it decrypts them. I believe AACS even has multiple player keys so they can disable whatever app is out there that is easy to steal keys from.
http://en.wikipedia.org/wiki/AACS
"The specifications for the product have been publicly released (as of April 2005)."