Hulu getting tough with Boxee

For those of you who don't know, Boxee is a content agregator that brings online TV together in to one desktop interface. It is is invite-only beta mode at the moment. Boxee was very popular because it pulled rather a lot of content all in to one place, such as Hulu, Netflix, ABC, CBS, Comedy Central, Last.fm, and flickr. Pretty impressive. Unfortunatly, last night Boxee got a notification from Hulu asking them to remove all Hulu content. Both sides admit it makes no sense since Boxee preserves Hulu's adverts, but apparently the content providers are demanding it.