I assure you it's not hooked up to analog (tho I think it would be HILARIOUS if I had it running on rabbit ear antennas)
Not only have they, it's on todays DVD tech
http://www.microsoft.com/windows/windowsme...film/T2DVD.aspx
It's all about compression in this case, not storage space.
EDIT: if you click to link that checks to see if you can play it, it tells you: Format: 1080P (letterbox 2.35)
^ cool eh?
EDIT 2: more info http://www.wmvhd.com/
and the 360 supports WMV HD, hence it can play 780 and 1080 movies, in the right format
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Oh, neat. Shows what I know. I was waiting for all 3 terminator movies to come out in a 3 pack before buying them.