You have to remember that with digital HD (ATSC), there's no longer NTSC or PAL. The only leftover is the frame rate (50/60Hz). Since this unit takes ATSC (although it also accepts progressive ED, which is basically NTSC/PAL), it has to convert it to either NTSC or PAL for the analog output. I'm just guessing that it's natively PAL and then has to convert it again for NTSC out. For example, my Sony BD player has analog outs. As far as I know, it will only display NTSC out of those, i.e. native. However, a unit in Europe would probably only output analog as PAL (but yes, I know that many PAL components drop frames to output a faux NTSC). They both take a digital ATSC signal and convert to analog, but both only have 1 native resolution. If I'm correct, someone with a native PAL systen would see a much better picture.