When VoD systems need to accommodate both SD and HD streams, the traditional capacity engineering rule for deploying QAM modulators face a new challenge. Two issues arise from this new paradigm. One is the streaming bit rate for HD, and perhaps both HD and SD streams to optimize the system performance. The second issue is the QAM allocation algorithm to minimize system inefficiencies. We propose a solution that has the potential to significantly improve system performance to accommodate a mixture of SD and HD VoD streams compared to prevalent methods.