First you should know that I own both an Asus O!Play HDP-R1 and an O!Play Air. Both work fairly well but were lacking the online services of Netflix, YouTube, Pandora, etc... Enter the O!Play Air. Offering the same ability as its predecessors (i.e. playing virtually any format of video, music and picture file you can throw at it from any location) and combining it with an expanded online services hits the sweet spot with the consumer.
My setup is as follows:
1) NAS server offering up music/pictures/videos via UPNP. O!Play Air can find and play them all over its Wireless N connection. All in superb resolution & sound quality.
2) Netflix subscriber, I've watched a couple of movies via the O!Play Air just to see if it works and it does. It works better than watching Netflix on my PS3 due to the faster wireless connection. Video quality is quite good streaming from Netflix.
What I cannot speak to yet is using the provided O!Direct software that comes with the O!Play Air. In fact, the offering of O!Direct was actually rather troubling for me. No where in the product documentation on Amazon or the Asus web site, could I figure out if the O!Play Air operated just like its predecessors or with the use of O!Direct, was it pushing the decoding of all media files onto the media server (i.e. PC or NAS device). Rest assured, that the O!Play Air does do all of the decoding on board. I will update this review when I've played around with the O!Direct software, but for now, I'm watching movies, listening to music & looking at pictures from my NAS device and also enjoying my Netflix membership via the O!Play Air.
One word of warning, be sure that your TV/Projector has an HDMI port on it since that is the only video line out available on this version of the O!Play.