The app does NOT go full screen like the market version of the Netflix app, but the quality is 10x better. For a test I watched both Tron and Toy Story 3 for 5 minutes each on both apps to allow enough time to buffer. There is no graininess on the HD app and it just pops more. Test both out and see the difference!
Totally awesome except for the lack full screen part. Wonder when we get an ICS HD one that'll go fullscreen? Anyone have an MHL adapter to see if it does just send the video feed to a TV and go fullscreen there? That's what I would want the HD app for more since I don't have any box or TV or anything other than a mediacenter pc in a couple of my rooms for Netflix. Still totally annoyed HD streaming is still blocked on PC's other than Youtube and Vimeo.