Had a demo at the Bristol show, it was pretty neat. He said 512kbps would be the minimum requirement.
Cost wasn't clear, but it was certainly a subscription service, with pay per view streaming movies (availble for something like 24 hours once they're cached onto the hard disc), and monthly subs for the various channels (roughly £2 a month for the MTV like music channel, for example).
Personally wasn't too keen on the interface - too many constant reminders that it was running Windows, with pop-up dialog boxes and the like. I felt the xlobby configuration been run on the uvem stand was far nicer look and feel wise, although there's obviously not the whole streaming / subscription model in that case.
Interesting though to see people working on delivering premium content over broaband.