The Xbox 360 will still only upconvert DVDs to 480p, and will play HD DVD movies at a maximum resolution of 1080i. To get 1080p output for movies, you must use a VGA cable, which is not subject to the same copyright restrictions. This just means the Xbox 360 is just like every other HD DVD and Blu-ray player on the market, but you wouldn't know that by reading Microsoft's press releases yesterday. If you ran out and bought a 1080p HDTV yesterday don't return it just yet, you should be able to get equal picture quality to 1080p if your TV processes the incoming signal correctly, and if it supports 1080p via component you can still play upconverted and native-1080p games.