The version of HDMI that they used has nothing to do with picture quality. ALL HDMI is capable of 1080p output. The audio is a different matter. IF you have a home theater receiver (and extremely high quality speakers) capable of DTS-HD and Dolby True HD, then maybe you should go with a stand-alone HD-DVD player. (1080i versions start at $299. 1080p versions start at $499).

But unless you spent more than $1000 on just your surround sound system alone, then you really aren't going to notice the DTS-HD or Dolby True HD.

Go with the Elite. It's only $80 bucks, and it's the only way to get 1080p from the HD-DVD add-on...........and yes, HD-DVD's are 1080p. In fact, the ONLY difference between Bluray and HD-DVD is the price of the players (HD-DVD is cheaper by a long shot).

We did a test of Bluray vs. HD-DVD here at my store. We put the new $1000 Sony 1080p Bluray up against a $299 1080i HD-DVD on the same Sony HDTV's. The Bluray had a white graininess to it, while the HD-DVD player looked great. Then we connected the 1080p HD-DVD player and it was just killing the Bluray player left and right. So now, I'm a little partial to HD-DVD. (cheaper and looks better).

 

Blue is on the right track. The difference in VGA and hdmi (threw xbox 360) there is a very unnoticable difference. If anything your sound will be alot better but you could always use optical sound from the vga's. I actually have my firmware flashed so i can play my "Legal" backups