The set may scale it to fit the pixels available, but again that doesnt change the actual resolution of the signal being recieved.Well that means that if the TV accepts it as a 720 signal. which it does (the same as some of these games) Makes it a HD signal.
I know the rules that the HD commission set. I have no problem with this. I am just saying that what everyone else is advertising as HD fits well within the range of what the Zune 2 is capable of.