What does 2008 hold for us in terms of AACS?

I was wondering, what 2008 will bring for us in terms of improved AACS. When Slysoft have broken BD+ will AACS LA then role out Sequence Keys, or have their other options? Is it likely that Slysoft breaks BD+? Does anyone know how far they are? And is AACS DRM a never ending game, where AACS LA just releases new MKBv's everytime a Processing or Device key is found?

Yes, it is very likely that they break BD+. Sequence Keys is something for 2009+ and the never-ending game will continue. :) When will MKBv5 be out there?

Well the whole future of aacs depends on the finding of a reliable method to extract device keys from a specific standalone model. This in combination with firmware hacks of HD DVD-ROM PC drives to allow for the extraction of KCD (and basically all sectors from the disk), will leave the AACS LA with few options and even sequence keys will not be helpfull (since if you can extract the device keys from one standalone, the extraction of the device keys from the same model will be the same).

I have read somewhere that the BD+ VM can access some private player BD+ keys. Which if this is true means it can detect which player is being used and prevent running on it (e.g: implement some form of revocation). This is probably the reason why Slysoft is not rushing to release their BD+ support: when it is released, the player used by Slysoft may become blacklisted for upcoming titles. In fact, I think BD+ will be also a cat and mouse game (that was the whole idea behind it) like AACS which will require periodic updates. These protection schemes are about preventing casual copies and controling a standard, it is why years after CSS has been cracked they keep on releasing new DVD protections...