Original Article Link
Hmmm. I wonder if they had to re-encode for this or was it jsut a matter of flipping a switch. I just started watching Lost via netflix and I watch it on the 360 because the quality was so poor. But I did try watching it last night on the PC as I was working on a sound issue and the quality is night and day (worse) then the 360. Not only is the video blocky it drops frames a lot.
Update: According to the replies to the article it looks like someone is just misunderstanding what devices do HD. It might not be reality for the PC yet.