I don't understand what that means. It's a Blu ray, but has DVD MPEG2 encoding on it? Many players are capable of telling you what the video and audio codecs are. If it's MPEG-4 AVC, it cannot possibly be a DVD encoding. Also, if it says it's Dolby TrueHD, it CANNOT be be a DVD encoding.
I don't think that would work well....there would be a lot more sellers than buyers for "unwanted" films. I've yet to see any deals offered on individual Matrix HDDVDs.