My mac is telling me when I attempt to download an HD movie from iTunes that, "This cannot be purchased in HD on this computer." this does not makesense because I have the retina display Macbook pro 15"

My mac is fully loaded, it is the brand new, a little over a year old Macbook pro. I cannot download this movie in HD because it says I cannot watch HD movies on my mac, I have done this countless times before and I don't know why i am just having this problem now. Is there a setting that I have wrong or is there a problem that needs to be corrected with my mac? I have all software and iOS up to date.

Unfortunately, Canon's most current 1080p digital cameras are plagued by the same bug: they have 5.0 as their H.264 level. This is why you can't synchronize  them to the iPad version of Videos, because Apple (pretty much unnecessarily) limited the synchronizable H.264 level to 4.1.
You can fix this in two ways:
- use a third-party video player with hardware playback and iTunes File Sharing sychronization (meaning you can just drop the file in them in the App list); for example, GoodPlayer or It's Playing.
- change the H.264 level. You can do this with both recompressing (in most cases, it's not recommended) with HandBrake or (this is what you should try first) just changing the given byte with a desktop tool. You want to read http://www.iphonelife.com/blog/87/making-stock-videos-application-play-every-mp4 -files-possible on the latter subject.
There's a related thread at https://discussions.apple.com/message/18910324?ac_cid=sa123456#18910324 , where I've posted a lot on these subjects. You'll want to read my first two large posts there, not the last one. (The last one is strictly discussing Canon camcorders, not digicams.)

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