Well, I wouldn't quite put it like that. Watching videos while they are transferring with a pull is no problem. There may be a brief delay before one can start viewing, is all, when transferring high bit rate or 720p .mpg files. Personally I find this less annoying than pauses while in the middle of viewing the material. I eliminate both, however, by recoding everything to h.264 before storing it on the hard drive. Well, that depends. Even with an S3, 720p content just does not transfer fast enough if it is coded as .mpg, and anything whose average bit rate exceeds 17 Mbps also generally does not transfer quite fast enough if it is coded as .mpg. With the THD, the issue is even worse. Again, that's not always true. Indeed, with most .mpg pushes, I get at least a minute or two of buffering before the program will start, even if I have both tuners disabled. Mp4 pushes are another matter, and along with the space savings, that is why I recode all my videos to h.264 in a .mp4 container.