From cnet.com:
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October 31, 2007 was the official end of the "grace period" for Blu-ray manufacturers, after which all players released must comply with the latest standard--Blu-ray Profile 1.1 (also known as Final Standard Profile and BD-Video Profile 1.1). Of course, that doesn't mean Profile 1.0 Blu-ray players still can't be sold, and if you walk into your local electronics store over the next few months, you're likely to see both Profile 1.0 and Profile 1.1 Blu-ray players on the shelf. So what's the big difference between Profile 1.0 and Profile 1.1?

Profile 1.0 vs. 1.1
There are several different hardware requirements, but it basically boils down to picture-in-picture functionality. All Blu-ray players up until this point have been Profile 1.0 and have lacked the secondary video and audio decoders necessary to play a smaller video in the corner while also playing the main high-def movie in the background. With the notable exception of the PlayStation 3, Profile 1.0 players cannot be upgraded via firmware to become Profile 1.1 players.
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Full Story: cnet.com

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