I've run a few test files through the new iTunes 10.6, and I can report: * iTunes will support both 720p and 1080p versions of the same video reported as one entry, the same way it supports SD and HD copies. However, it does not have an "HD 1080p" badge or anything like that. * iTunes gives you a choice on whether to prefer SD, 720p, or 1080p playback * Presumably this choice will also extend to syncing options for the new iPad and iPhone 4S * Here's the nitty gritty on how HD files are tagged: basically, whereas before the HDVD atom was either 0 (SD) or 1 (HD), now the accepted values are 0 (SD), 1 (720p) and 2 (1080p). Presently there is no software that will allow you to set HDVD to 2; hopefully Subler will be updated soon to allow this. For now, you can set it with a hex editor like 0xED.