No worries! The feature works great. Once you enable either HD DVD or Bluray your Queue is automatically updated. In my Queue, under the "Format" column heading, I can choose between DVD and HD DVD for the movies available in that format. Which is why I had to diss Bluray.
I went browsing and I was suprised how many movies were available.
The Blu Ray link is also available, it can be found in the Genre section.
Link:
http://www.netflix.com/BrowseSelection?sgid=2444&hnjr=3