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Want to record 1080i HD signals? Well, screw you! That's the word from Hollywood, where the Advanced Access Content System (AACS) has negotiated a deal whereby hardware manufacturers are required to down-convert the analog output in HD DVD and Blu-ray players. Basically, the signal will be down-converted from the potential 1080i resolution to 960x540. While this 960x540 resolution is still better than current DVD-quality visuals, it is not utilizing the potential of full HD. Reports are indicating that this down-converting will prevent pirates from ripping and distributing that best possible picture quality. It is up to individual studios to decide whether or not they want to use this "feature." I'm betting they will all opt in.

Hollywood studios Win Again [HD Blog]