I called Walmart to get answers, and was told the first you'll need to create both a Vudu.com and UltraViolet account (the latter is the movie industry-led digital rights management process for converting discs to digital versions).

Once those two accounts have been linked, Walmart says you can bring your DVD or Blu-ray in for conversion, at which point a Walmart rep--typically located in each store's photo section--will ask for the email address associated with your Vudu account.

Next, you select whether you're after the $2 SD or $5 HD version--the Walmart rep confirms you can't have both, which is unfortunate for HD buyers who want an SD alternative on devices with low bandwidth or data-caps.

Assuming what you want is part of the program--so far, the Hollywood studios that are participating are Dreamworks, Fox, Paramount, Sony, Universal and Warner Bros.--your order's processed, and the Walmart sales associate stamps the inner ring of your disc with a label before handing it back over. This is to prevent you or anyone else from using it for conversion again. Note that movies with "extras" discs may or may not be fully converted--Walmart says support for extra media is at the discretion of each studio.

In theory, says Walmart, there's no limit on the number of discs you can convert at once. I'm assuming the company is betting that most people won't haul hundreds of discs in at once, though if enough people do, I'd wager limits will magically appear. Sadly, bulk conversions won't come with discounts, meaning someone with a moderate collection of 100 DVDs will spend $200 for a straight conversion and an incredible $500 for an up-conversion.