At $84, I'm tempted to buy one, but only if 1080p playback works flawlessly. Have the bugs finally been worked out?
It depends on the codec within it. With XBMC or SPMC, I've found my Blu-Ray rips all technically play of course, but those whose video are encoded in VC-1 don't have hardware decoding and thus don't play smoothly. Those using MPEG-2 or H.264 play perfectly. To get around that, I transcoded such BR's to H.264 at a rather high quality (and kept the originals around for if / when VC-1 hardware decoding ever gets going).
On the audio side, I have pass-through enabled along with Dolby Digital encoding enabled for XBMC's audio transcode (that second part is necessary so something like 5.1 PCM, FLAC, Dolby True HD, or DTS Master audio can reach my receiver in 5.1, since Android devices currently can't pass full-bandwidth surround audio). Hope this helps you in making your decision.