The problem is that the device we viewed was a prototype. At this point, the Xdock HD can only upconvert to 720p and it is not currently compatible with the iPhone and iPod Touch. However, they are fairly confident that all of this will be remedied in time to meet the Spring 08 launch. So the pressure is on. Plus, $399 is a fairly steep price to pay given the fact that there are cheaper alternatives out there.

The Catch:Everything sounds great, the only question is how well does it actually work? From the press release:

The Creative Xdock HD is the only iPod dock that upconverts your video to 720p or 1080i resolution and your music to X-Fi Xtreme Fidelity®. The Xdock HD plays video on an HDTV in full DTS surround sound and it can also wirelessly play music through X-Fi Wireless Receivers connected to speakers throughout the home. The Xdock HD is designed for use with the iPod® Touch, new iPod Nano and previous-generation iPods.

The Xdock HD connects to a home theater system via HDMI, or it can be connected with component or composite for video and analog line-out or optical line-out for audio. While it docks and charges an iPod, the Xdock HD outputs a menu to an HDTV screen which users can navigate with the included wireless remote to select videos, music, photos and podcasts stored on select iPod models. Users can also adjust video settings including skin tone correction, luminescence sharpening and color saturation. The remote also controls audio functions including volume and the X-Fi Crystalizer® and X-Fi CMSS®-3D.

In addition to connecting directly to your home theater system, the Xdock HD can wirelessly distribute music throughout your home to X-Fi Wireless Receivers up to 100 feet away without requiring a wireless network. There are two different modes you can select for wireless distribution of music in your home: broadcast to all receivers simultaneously or select individual zones. The Xdock HD and each X-Fi Wireless Receiver can be controlled with its own remote to activate X-Fi Crystalizer and X-Fi CMSS-3D, adjust volume, and control video and music playback.

The Creative Xdock HD includes one X-Fi Wireless Receiver to wirelessly connect to a pair of remote speakers, and will be available in Spring 2008 for US$399.99. Additional X-Fi Wireless Receivers will be available for US$99.99.

The latest products in Creative's XFi series, the Xdock and Xmod wireless, have seen the light of day in Japan. A step on from last year's MP3 enhancer, as well as improving sound quality, the Xmod, which uses Creative's XFi Crystalize technology, will wirelessly transmit music from your iPod to your speakers. Simply connect one box to the USB port of your computer and the other to the speakers.

The dock is fourth-gen iPod- (and first/second gen nano-) compatible and, again, connects to your PC via USB, but it won't transmit images via wireless. Expect to pay $250 for the wireless, available in May, and $208 for the dock, which should be around later this month. There's a gallery below if you want to see more. – Ad Dugdale

Creative, radio USB audio "Xmod Wireless" [PC Watch]