1080P content on HD-A2??

Absolutely. The max output resolution will be 1080i, though. And yes, the A2 will output in 720p...Will

By outputting 1080i from a 1080p source to a 1080p display the end result is 1080p though if I understand the process correctly.

If your set does proper deinterlacing you will not see a difference between 1080i and 1080p output. However, there are some sets that do deinterlacing "wrong"...doubling one of the interlaced frames instead of using both, for example. Check some reviews of your set for this before you get the A3.

99.99% of all HD DVDs are 1080p. Work great on my A2.

Yes, most are encoded in 1080p24 which is not the same 1080p60 that most displays that accept "1080p" will recognize. Some displays will accept 1080p24.

larry