QUOTE(brandogg @ May 16 2008, 02:26 PM)

If your TV is 1080p, then the 360 will play the WMVs at 1080p.
Correct, and the PQ should be the same since your 360 won't have to do any scaling at all if the videos are native 1080p. I have used mine to play a few different WMVHD movies and they all look great. The only other factor would be noise, but PC's aren't exactly the quietest things either.