""I look at the DVD SP 4 users manual and it says it can do HD DVD?s, and it says it can do Blue-ray DVD?s.""
Really? Where does the manual mention BluRay?
In reality, Apple choose the wrong format to build DVD Studio Pro to, back a few years ago when DVD SP Pro 4 was shipped. There are still NO HD-DVD burners available and BluRay burners are everywhere but they cost >$500.00.
The only thing the current V4.2 of DVDSP addresses is RED laser HD-DVD. Useless for most part.
Begins to look like Sony finally won one battle.