Here (scroll down) are some technical details on how Microsoft/Intel/AMD's total access control system, Palladium, will work. It's quite ingenious, though still seems like something too draconian. With any luck it'll flop, people will avoid restricted content, and even Microsoft, the RIAA and the MPAA won't be able to get people to pay for software or content which breaks if their system changes.
(via bOING bOING)