HD Ready can show only upto 720p resolution but full HD support upto 1080p. You can watch 1080p quality videos on HD Ready also but the quality will be degraded. That said, on a 32' monitor human eye does not perceive much difference between 720p and 1080p quality when watched from appropriate TV viewing distance. If you watch your TV from a close distance ( say, less than 2 meters) then you will notice the difference. Also, I believe most of the TV channels are aired only at 720p so quality will be same on both kind of TVs when watching these channels. But while watching blu-ray media or playing high-end games on your xbox the quality difference may be visible.