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"Native BluRay or HD-DVD are backward compatable, aren't they? Will I be able to play, for instance, BluRay discs on a BluRay player and project at 720p with my Panasonic AE700? It won't up-convert from SD for some silly reason, will it?

Thanks."

I think this depends on the player. For example, I currently have a PS3 with a HD1000 projector and if I try to play the Talladega Nights Blu Ray movie on those, then the movie is down converted to 480p. I have seen other postings were they say that if the movie comes with support for all resolutions then it will display correctly, however I am not sure about this.

I also connected the PS3 to an LVM-37w3 (1080p monitor) and the movie displayed correctly at 1080p there.