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I just downloaded the currently-free episode of Battlestar Galactica ("He That Believeth In Me") from the "Battlestar Galactica, Season 4 - HD" section of the iTunes Store to check out the new HD video in iTunes, but the version that downloaded is in the non-HD widescreen resolution of 853x480. 853x480 is not HD! Grainy, overcompressed, and tiny? Definitely. HD? No. It doesn't even look as good as a DVD; I have seen better quality video in higher definition when watching free episodes of programs through Web browser plug-ins.
It isn't just Battlestar Galactica either. Supposedly-HD episodes of other programs just finished downloading (again, freebies) and they all seem to be 853x480.
Television shows with mediocre video quality were already a rip-off at $1.99; the regular $2.99 price for faux-HD episodes at the iTunes Store is simply absurd. This garbage they are calling HD is a terrible deal and it sullies the very term "HD".