I feel doubly glad we don't have an HD TV
Of all the consoles:
PS3 costs the most and can't upscale, and downscale to 480p which miffs alot of people
Wii is cheapest and can't do 480p right
360 is in the middle upscales correctly as it has a specific scalar chip just to do it
Be interesting to wait and see what the actual problem is and if it's fixable or there in the same boat as Sony with there downscaling issue.
Edit: Don't know if it was region specific but
Wii Update on PAL region, none knows quite what it does yet but it seems to do something related to video stuff.