Here's how I did it:

Hardware:
AMD Barton 2500+ overclocked to 3200+
NTU400 motherboard
Generic offbrand 5200FX nvidia card using vga output
HD3200
Sceptre X37sv-naga but any monitor with 1920X1080 resolution (Costco sells a good one: Sceptre (in 37" or 42"), Westinghouse also makes one) should do.
Software: R5B7

1) Somehow, boot windows and install powerstrip
2) Click the taskbar icon and go to display profiles>> configure Enter advanced timing options, enter custom resolution, click the E-EDID radio, click add new resolution, close, use the copy button and paste the results to a text file to generate and display a modeline. I printed this out, you can use a pen drive or something
3) edit the etc/X11/X86Config-4 file adding just two lines.
3a) The first line was added just above #Other modelines (at the bottom of the main section of monitor modelines) My modeline was:
modeline "1980X1080" 148.5 1920 2008 2048 2200 1080 1084 1094 1124 -hsync -vsync
3b) Scroll down to the screen section. There should be a list of color depths. My default color depth was set to 24 so I scrolled down to that subsection and added "1980X1080" so that the line read

Modes "1920x1080" "1024x768" "800x600" "640x480"

4) Save and reboot. My first reboot MythTV tried to "prescale images" and then crashed dropping me onto my desktop (Tux watching TV). So opened an xterm and ran mythfrontend this time the prescale ran a bit faster but the colors got wacky when I entered a menu, I made a mistake of setting appearances to random and had to reboot and or run mythfrontend like 10 times before it loaded properly. My theme now is "mythcenter" with QT style set to "Desktop style)
5) Playback worked well, I had to hit the W key a couple times to get it to the proper aspect ratio (16:9)
6) FYI my playback settings are: Deinterlace is checked, the method is linear blend, mpeg2 decoder is set to standard.

Most of this is from memory so if you see and obvious error, feel free to correct me. I'll get you system resources as soon as I get SSH working.

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Skill level: 10^-3

Sweet! How much CPU does it use while viewing 1080 or 720 content?

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70% watching law and order. How do you tell if that's 1080i or 720p content While I'm at it, you wouldn't happen to know why I can't shutdown softly would you? http://mysettopbox.tv/phpBB2/viewtopic.php?t=9373

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Skill level: 10^-3

Hmmm... I dunno anything about shutoff -- my KM box runs 24/7.

You will find that certain stations in your area broadcast in 720p while others broadcast in 1080i. In the S.F. Bay area, for example, I get 1080i programming from CBS and PBS, but I get 720p programming from ABC. Fox sometimes gives me 720p and sometimes 480p (or is it 480i?).

Look at the size of the recording in MythWeb. It will be something like 7-8G/hour for 1080i and less for the other formats. The 480 format is only like 2-3G/hour. I see some 720p shows (like "Lost") are around 5G/hr.

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How's your electric bill For me, getting the computer to shutdown after 15 min of idle wasn't hard. I guess if you were running a server or something it would make sense.

In that case, Law and Order is 1080i. That makes a bit of sense. I guess all it has to do there to upscale to 1080p is just deinterlase. I'll try and grab something in 720p—so far it's all been 1080i

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Skill level: 10^-3

I think you are missing a number in your modeline in the 1920 2048 2200 part of it.

Yes, thank you. I'll edit the post. Sorry if anyone tried it. 1920 2008 2048 2200

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Skill level: 10^-3

Two updates:

Viewing 720P content, the processor is at about 58%

I switched from using a VGA cable to a DVI to HDMI cable and it works like a champ. Viewing 1080P over DVI is all I could ever ask for. Thanks community. I'm going to experiment with my wireless card now.

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Skill level: 10^-3