That sound you're hearing is your hopes of a $299 HD DVD player anytime in the immediate future deflating, that is, is Fuh Yuan is to be believed this time around. Unfortunately, it seems that the firm pulled the trigger a bit too soon on a hopeful order, as a recent retraction on the company's website insinuates that Wal-Mart simply inquired about their ability to "provide a schedule" along with "cost and quantity" details for Wally World to evaluate. Currently, it seems that the "capacity is still under consideration," but it did leave the door open to believe that this idea may still be churning in the background by cordially inviting anyone with an up-to-snuff manufacturing facility to ping them for more details. The good news is that a sub-$300 HD DVD player isn't a matter of "if," it's just a matter of "when," and as long as Wal-Mart keeps burning down price barriers, we're sure it'll surface (arguably) soon.
Update: Wal-mart concurs, stating today that "The article... was full of inaccuracies and we had no participation in it," and "Most of the facts, including the purchase, were untrue."