The solution:
http://www.metacafe.com/watch/4823801/atlona_at_hd620_hdmi_mini_display_port_to_mini_display_port/
http://www.atlona.com/ATLONA-HDMI-MINI-DISPLAYPORT-TO-MINI-DISPLAYPORT-SCALER-AND-SWITCHER.html
If you read the details this takes 1080p resolutions and scales it up to the 27" display's 2560x1440 resolution, and also the 24" 1920x1200. First device I've seen with the scaling!!!!
Now what I want to know is if on these devices, switching from your xbox 360 and plugging in an HD cable box via HDMI is going to be a not-so-smooth switch OR if it would be no different than plugging in a camera into a usb or a HDD....
If anyone has purchased this please let us know. Also I was wondering if a 2 to 1 HDMI splitter would allow you to plug in 2 HDMI devices at once (have them both constantly connected to your imac) yet be able to pick and choose on the computer which one to use. Because it makes no sense to buy 2 of these devices ($$$) so you could have 2 HDMI hook ups.
Thank you and you are welcome