I've watched the 1 hour presentation Mr. Draves gave for Google, so I did pick up a little technical background on the project.
One thing I noticed with the current Windows version does not always display transitions between sheep. I do get frequent hard cuts between sheep. Also the parameter sets do not seem to be interpolated with splines, as Mr. Draves indicated in his talk about the "Dreams in High Fidelity" installation.
Is this something that may be improved in future versions of the Windows client? Is this possibly caused by the download server not always being available or being capped at 250GB per day?
Other than that, I love the high resolution of the sheep distributed now. I don't really see a need for a HD version. But I think the transitions need to be improved in the existing clients. It should build a proper graph of sheep and follow the edges.