I have setup my HTPC using 1024 x 576. No problems. Scaling is fine. And I don't have to worry about using YXY to move the DVD Image around. I also have the 1024 x 576 pixels defined at the top of the screen. This way I only have to mask the bottom part of my 4x3 screen for widescreen movies. Then for 4x3 stuff (normal tv) I can just change resolutions to 1024 x 768, and pull the screen down to it's full heigth. Masking this type of setup is super simple. Just put side curtains around the screen, and attach black velvet to the bottom screen bar. This way when you bring the screen up and down, the masking goes with it. Anyway, back to the posters subject, you can do it, it works well, no scaling anomolies ala the skyworth situation.
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Adam