The header says it all folks. We just ran some tests on the AppleTV's playback limits by streaming 1080p movie trailers in iTunes and managed to verify murmurs saying the device can accept 1080p content. Unfortunately, output is a different story, since it downscales the image back to 720p on your display. Yes it's a little frustrating -- especially since it's predecessor was up to the challenge via a Broadcom mod -- but it should at least comfort those with a massive library of 1080p videos who were worried about reconverting for their new black box. Considering the hardware gems
