Presumably, this device is designed optimized for their content with their encryption, not what you provide (ripped DVD's, DVR stuff) yourself.
iTunes doesn't care if the content is unencrypted. It will play any video or audio files that you have codecs for. So if you have things like the MPEG-2 component for Quicktime, you'll be able to play any MPEG-2 video file or any MP3 audio or MP4 audio or video..
It will be cool.
Maybe I won't need the HD1000 I just bought from a seller on Amazon!