the way i read it it wont downconvert for Component cables etc. but it not clear as to wether, if you are using HDMI on a non-HDCP compatible connection, it will not downconvert that signal.
Afterall it does say "that all of Sony’s Blu-ray disks will be free of that digital flag that tells the player to down-rez the HD signal if there’s no HDMI cable present."
it doesnt suggest that a non-HDCP set will be able to display full res over HDMI/DVI.
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