Why Microsoft Won't Have Blu-ray on the Xbox
Yes, the Blu-ray standard supports 1080p. Finding a movie encoded at 1080p and a player capable of 1080p output is the harder part. HD-DVD and Blu-ray supports flung so much misinformation at each other, it's hard to know what is truth and what is fiction these days. Suffice to say, both standards are more alike than they are different.