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I'll take a stab.
1) No. BD and HD-DVD use different laser technology than SD DVD and are not backward compatible with SD DVD players. Some HD-DVD's you purchase are billed as "combo" discs, having HD-DVD on one side and a SD DVD on the other. Only way to read a BD or HD-DVD disc is with an appropriate player, combo player or PC drive.
2) Touchy and controversial question. Odds are in favor of Blu-ray at the moment after Warner made an announcement to publish exclusively in the Blu-ray format in a few months (they had been publishing in both formats).
3) Yes, but not on a single layer. HD-DVD group has plans for a multi-layer (4 if I remember correctly) that would surpass the capacity of a single layer BD. However, BD also has multi-layer capabilities so could concievabably keep ahead of the game.
4) Who knows what the future may hold. 2k or 4k in the home? 3d holographic projection? Time will tell.
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