Yeah... I think that's what's confusing viz though.
Sometimes I don't know why resolution is such a hard thing for people to grasp!? (just talking in general)
I don't mean interpolation... that is still a form of up-scaling... i mean stretching... as in a 4x4 square of pixels = 1 pixel for the up-stretched low resolution.
Some TV's have very bad up-scaling (good example - SHARP) and look MUCH better when they are just stretched.
Also most TV's have this up-scaling ability however it produces a minute lag for gameplay and reaction times... the best way to test this I find is Mario for SNES (this test works for me the best) and you can feel Mario jump a couple of split seconds after you press the button when you use the up-scaling.. however when you use the direct source stretched the same issue isn't present.
I had some bad experiences with up-scaling with a Panasonic being slow and I couldn't figure out how to disable it... pity cause I like picture of most Pana's.








