The HDMiKey actually CAN upscale to 1080p, but you have to visit a special webpage (
http://hdmikey.com/manager/) via Wii Web Browser to turn it on.
Take a look at
http://www.consolereview.net/showthread.php?p=1082
Yes that is correct. It will upscale ( enlarge your picture to fill your lcd screen ) instead of your tv.
It will
NOT provide a higher resolution and it will still be the max Wii res 720 x 480p, but your tv will recoqnise a 1080 signal because of the pre enlarging ( upscaling ). This will not make your picture any better in comparison to component connection.
Upscaling is a fancy word for something like a magnifying glass.
All lcd screen do upscaling unless a
native signal is fed to the screen.
Upscaling is purely a method to get a lower (than native) resolution, fill your screen.
If it would not scale, a 480p signal would be a small 720x480 square in the middle of a 1080p capable screen, so the tv stretches it to 1920x1080 fit the screen. This is what upscaling is.
some tv's scale better than others depending on the picture processing in your tv.
This can in some cases lead to some input lag. An external scaler sometimes can eliminate this lag, as the tv does not have to scale the signal anymore, because the scaler does it beforehand of the tv input.