It's supposed to upscale content to your screen resolution. So any supplemental features in SD should get upscaled to 720p or 1080p in the process. I haven't personally tried to see if this is the case but its what my understanding is. I think its a fairly minor feature but I've seen at least one person griping about it on a forum before now.
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DrXym @ Jul 11th 2008 6:16PM
It's supposed to upscale content to your screen resolution. So any supplemental features in SD should get upscaled to 720p or 1080p in the process. I haven't personally tried to see if this is the case but its what my understanding is. I think its a fairly minor feature but I've seen at least one person griping about it on a forum before now.