Pemalite said:
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Well of course it isn't exactly stretching it, but at most it just fills it in with missing pixels with guesswork which can result in some serious artifacts. It is just converting it to a bigger pixel count, but not re-rendering anything...
Sources: http://www.engadget.com/topics/hd/2007/10/05/just-say-no-to-stretch-o-vision/
http://www.tvweek.com/news/2007/01/tnt_stretches_for_hd.php
http://www.hometoys.com/news_detail.php?id=15006671