The website states,
"HD VMD is a true HD format with 1920 x 1080i/p resolution, up to 40 Mbps bit rate playback, DVD up-scaling so users can watch their existing DVD collection and achieve premium picture quality through their HD TV monitors. The HD VMD player is suitable for playback on all HD-capable display devices and will support existing optical disc formats: CD, DVD (DVD 5 & DVD 9). HD VMD players also feature Advanced Encryption Standard (AES) and all region codes for greater film viewing flexibility."
Before you go running out to stores to purchase this ramped up high quality player, keep in mind that currently content in this format is not king. Right now, few titles exist in HD except for much older titles, and no word has been expressed when the newer releases will hit stores. For now this might be a development for the super user who wants to be the first on the block to have the nifty cool gadget.