Are we getting HD video playback?

[gateway]

When watching movie trailers from all three movie apps, Movies, Moviefone, and IMDB. All looks fuzzy. Moviefone will let you pick HD and it defaults to that but it just looks like standard def. Watch a movie trailer and tell me what you think.
Are we getting HD playback or not in 720p. Also does it record in 720p HD
Thanks
Am I missing something in setting ?
Help please

 

[rushmore]

Not so sure it is the device per say, but probably how the site's server sees the device. Probably sending bandwidth based on a typical portable device.

 

[GeekClass]

I found a link with a bunch of mp4 videos in 720 and 1080p that are meant for Tegra 2.

Index of /xoom

Apple movie trailers

Playback of both the 720p and 1080p is smooth, so yeah I'm guessing some apps downgrade their vids. I also noticed that in the youtube app.