We were intrigued when we heard that the new Zune had beefed up its TV-out settings to full DVD quality, supporting playback of 720x480 video at 30fps or 720x576 video 25fps (NTSC or PAL, in other words). All that frames per second talk along with the promise of "DVD quality" got us thinking that Microsoft might be talking progressive resolutions—480p.
Since the new iPods just began supporting 480p out, Microsoft would be joining in the progressive revolution, ditching those pocket player motion artifacts from once and for all. But Microsoft's Zune man Cesar Menendez just confirmed with us: Zune output is interlaced, just like the old iPods'. And since the issue seems to be one of processing power, it's doubtful that we'll see a simple 480p firmware update for Zunes. But we'll keep an eye out. [zuneinsider]