Confirming our earlier reports, some owners of HD television sets will not be able to see HD DVD and Blu-ray programming in its full glory, as the Advanced Access Content System (AACS) used by both next-gen formats has been modified to require picture degredation over analog connections. As a result, the signal sent through analog connections will be constrained to 960×540, rather than the 1920×1080 that both Blu-ray and HD DVD are capable of.
As we all know very well, this will likely not stop piracy in any way. It sucks for those who do use an Analog signal to suffer with ‘poorer’ quality. It seems that if you intend on using an HDMI connection, then you will receive the top quality you want. Check out the full article at Ars Technica.