I own two HD1000's (the first purchased when the product appeared on the market and the second when Roku committed to an OS upgrade to be released about mid year. The sole purpose of both was to play streamed MPEG2 video, and you know how that turned out. Both units sit here useless for all practical purposes (my wife, after accidentally putting her hand on top of one of the units suggested that, if nothing else, we could use them as hot plates). Like the other gentleman, I've been in this business a long time, 40+ years to be exact. I certainly know things don't always turn out as we originally had intended, regardless of what we do to try and fix them. What separates the men from the boys however is what you do about it when you make this determination. To save us countless hours of frustration, at the very least I would hope Roku would have the guts to admit the HD1000 didn't turn out quite the way they had hoped, and what we have now is about as good as it is going to get. Better would be to have them offer a factory upgrade, cash buyback. etc. Personally I don't think the unit is ever going to work with the amount of memory it has, regardless of what tricks the programmers come up with; to move around seamlessly in high bandwidth video, you need a very large local buffer.
Assuming that isn't going to happen, the next best thing, IMHO, would be to have a server-side application to push the video stream down the pipe. From my tests, VLC would do this quite nicely. All that would be needed is a remote VLC console and a real-time stream-to-screen app running in the HD1000... perhaps another incarnation of VLC. No menus, file directories, or wiz-bang options, just play the stream as served; let the server-side VLC do all the work.
I certainly donâ€™t mean to trivialize the task, especially since I donâ€™t have a working knowledge of the HD1000 hardware and software. Admittedly it is pure speculation on my part, but if the HD1000 is going to be saved in its current hardware configuration, I see no choice but to move more of the task to the server side of the equation.