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blu-ray does not actually fully play its videos in HD like it claims, while hd-dvd is true high definition in a video format. blu-ray just up converts it. you will get a MUCH better picture when using HD-DVD
Sorry but that is complete rubbish. Blu-Ray and HD-DVD are just storage formats, they have nothing to do with the output definition of the picture, which is determined by the configuration of the used Codec. Both HD-DVD and Blu-Ray support 480p through to 1080p
The reason why some HD-DVD movies have looked better than some Blu-Ray movies is because of the codec chosen. HD-DVD went with VC-1, which makes much better use of space than MPEG2, which is what Blu-Ray were using (because Sony didn't want to pay licensing costs apparently). MPEG2 can output the same quality as VC-1 although the bit-rate is higher. So, because early Blu-Ray discs were only single layer (25GB) the compression had to be higher than would have been ideal and the picture quality degraded.
IF Blu-Ray starts using double sided discs (50GB) this won't be an issue or if Sony decides to go with a newer codec that can compress data more efficiently (like h.264 or VC-1) then this won't be an issue. In fact Sony are expecting 4 hours of HD movie content on a single disc using h.264 format in the near future.
To say Blu-Ray isn't true HD is complete nonsense and shows a distinct lack of understanding about this topic. Also Blu-Ray movies so far have been full HD. What IS true, is that the PS3 doesn't up scale DVD films, it shows them at 480p, whereas the Xbox's HD-DVD apparently does, which is a fantastic feature. Apparently the PS3 may do this in future firmware updates, but who knows.