1080p output is player dependent. From all the reporting at CES there was no mention at all of 1080p with HD-DVD. In fact, while many Blu-Ray movies featured prominent 1080p advertising on the front (Fantastic Four) the HD-DVD movies didn't show any sign of this that I have seen.
There is a lot of good info and forums that talk about HD discs, mostly Blu-Ray related.
www.blu-ray.com
I think one of the biggest pieces of news was how little support seemed to be at CES for HD-DVD. There is a very good write up at Blu-Ray.com about CES and almost ALL the companies that are making players. Also info on HD-DVD... not all negative, but interesting to note that some companies that presented Blu-Ray and HD-DVD prototypes actually had a release date target for the Blu-Ray player, but specifically had no plans for definitely releasing the HD-DVD player.
Anyway, the players will work just like DVD players - stick a disc in, press play, have a nice day. Odds are REALLY good your connection will have to be HDMI/DVI for HD playback, though this has not been finalized.