Also I'm not sure if you need the full resolution, as 1080 is an
interlaced
resolution... I don't believe there are any 1080p displays on the market
at
the moment.

Yes, but a video clip doesn't need to be interlaced. DVD movie ( not
extras ) content is 480p or 576p non-interlaced. You already get 1080p
videoclips like at www.wmvhd.com