Just before the Tokyo Game Show, when Microsoft first announced support for 1080p, we were impressed with the sheer audacity of the addition! For all of Sony's technological one-upmanship, Microsoft had deftly removed one of the PlayStation 3's brightest tail-feathers in a single software download. Well, at least it seemed that way until a little over a month later when the update was available and Microsoft's implementation left a lot to be desired. Of course, they promised a patch to correct some issues in the update, notably the incompatibility of 1080p-over-component on televisions that supported the format. That second patch has finally arrived and, as promised, solves some of those issues. For example, the above image shows a Sony XBR3 television finally displaying 1080p content over component. So, for those users who only needed that fixed, you're on your way.
Still, despite the update's promise of "improved support for HD video output over VGA, including 1080p resolution" this blogger still encounters a significant (and certainly abnormal) amount of screen tearing while using the VGA connection, not to mention the pale, washed-out colors that have become emblematic of the 360's VGA implementation. But we're not the only ones with problems. A quick perusal of the AVS Forums thread shows some another anomalies that don't instill much confidence in Microsoft's upgraded upgrade.
We have a feeling that Microsoft will continue to tweak this feature until it works as expected; however, after two attempts we're left underwhelmed and Microsoft's magic hat trick is looking more and more like smoke and mirrors.
Read -- Major Nelson's Dashboard update announcement
Read -- AVS Forums on "improved" 1080p support