| MadB, can you find a link to that? I've heard rumors, but would like to read for myself.
Oldskool, HDMI 1.2 IS good, if they would process and pass something like Uncompressed PCM or the like. It's not necessarily the question of bandwidth because as of right now, they aren't even using the potential of HDMI 1.2 on the Xbox 360. People pass off 1.2 as being nothing compared to 1.3, but just isn't the case. My receiver accepts 1.2 and as the PS3 has been sending my receiver uncompressed PCM I've had no problem and see no problem with the bandwidth. Microsoft's decision to continue not supporting a higher bitrate than just simple 640kbps Dolby Digital is beyond me.
I know that they are going to be switching to conversion of all the higher resolution stuff to DTS 1.5MB core, but still... the HDMI is designed to pass much more than that! My Receiver has been receiving 4MB and 6MB uncompressed PCM via the PS3's HDMI for some time now, so I believe that the 360 SHOULD do that as well!
I am happy I finally have HDMI on my 360 though, since I've found it to be a sufficient improvement already. I only gripe about the minor things that most people won't even care about now or even in the future of the Xbox 360.
While I had the possibility of passing the 1080p signal to my TV via VGA all this time, I just heard too many horror stories of how it didn't work properly, so I am glad that the HDMI solution has come to the market and seems to eliminate a lot of those problems for people who want 1080p. | 
