Yeah, for a fixed panel system (like Plasma or DLP)you'd need to 1920X1080, but then you could do 1080P with a line doubler which would be the ultimate IMO -someday!!

They just mean that the set can 'handle' the picture resolution. It's a little marketing trickery is all to make it sound like it can do anything and everything when it really can't.

Everything justs gets changed to the panel's res.

Should still look sharp and solid, but my next set's gonna be 1080P capable -many years from now I'm sure.

I hope they don't make the first HD-DVD's 720P. 'Cuz down the road, they'll probably just come out with 'Super HD-DVD's that can output 1080P, and then we'll all have to re-buy T2 yet again!!!
-heh