From the Manufacturer:
High definition playback delivers 720p/1080i resolution at a transfer rate higher than DVD or even HDTV, resulting in a more detailed, realistic picture. Advanced audio, including Dolby® TrueHD, Dolby® Digital Plus and DTS® HD (core only), along with legacy formats including Dolby® Digital and DTS® bring an increased sonic realism to movie soundtracks. Backwards compatibility means you can enjoy your existing library of DVDs and CDs, and through the process of upconversion using HDMI, your movies are scaled to match the resolution of your HD display. An interface suite includes an abundance of audio/video connections as well as an ethernet connection for firmware updates and future internet delivered features.