the HD-DVD add-on for the XBOX360 is connected via USB2 connection, and the HD-DVD add-on just stream information off the HD-DVD disc to the XBOX360 via USB2 connection for the XBOX360 to process it.
And here is this little concern, the design of XBOX360 doesn\'t have an HDMI output, so the maximum resolution they can output is 1080i via component. I guess maybe future firmware upgrades may allow them to output 1080p for "xbox360 games" only, but the problem the article is saying is that no 1080p HDTV out there now accept 1080p via component video inputs. So, the idea is moot.