1) What avaserfi said
2) The VSX-94TXH does 1080p upscaling of any video source. However, it uses the Farouja chips
which in many peoples opinion is not as good as the Onkyo's Reon HQV video processor.
Having never seen the Reon in action, and having played with my 94 for a couple weeks now I think it does a great job. But ignorance just might be bliss, I just don't know. Simply put though, yes, it will upscale your video signals to 1080p.