I don't have first hand experience with the Anthem/Gennum processor as I am one who's awaiting a D2 (and, I have a 1080P DLP). But, I remember reading LEVESQUE's response to a similar question in another Anthem post (and he knows this topic very well, btw).
Originally posted by bkzoller
Is the upgraded D1 expected to transcode video inputs to 720p or 1080i for output on HDMI, or is that speculation? The upcoming Onkyo/Integra/IR products will transcode video inputs only up to 480p for the HDMI output and 480i for the component output, according to what I found in the manual.
The D1 will do alot more then that. It will upscale to 720p and 1080i, but we will also be able to perform custom resolutions to match any display non-standard resolution (other then 720p or 1080i).
Hope it helps,