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Not possible on the S300. It doesn't have the hardware required, specifically the secondary audio/video processors which handle PiP content.

I'm pretty sure it has been confirmed that the 2nd video/audio processor that is necessary for Profile 1.1 is not present in the S300. So unless they figure out a way to make hardware out of software, it is not possible to upgrade to 1.1. The Sony guy was misinformed to say the least.

It's not just DVD-ROM. 1.1 includes PiP commentaries and advanced Java applications. If you want to take advantage of the HD DVD type Picture-in-Picture commentaries that play in a small window along with the feature film, then you definitely need a 1.1 player. I never thought I'd want that...