No - you get HD quality from HD and ONLY HD.
Everything else is a cleaned up version - the best possible version really - of the lower quality format.
In order (pretty much) standard analog cable and VHS are about the worst original video sources. Digital cable and satellite (DirecTV/Dish) are next. Then DVD comes into the mix as the best non-HDTV source available.
Finally, we get HDTV from cable, satellite, and Blu-ray/HD-DVD disc formats.
So, what happens when you run a VHS tape through this machine? Well, you get a really big VHS image. It will look NOTHING like HDTV - but it won't necessarily look 'bad' or even 'so-so'. It MORE depends on your acceptance of the quality. If you know VHS won't look great and aren't nitpicky, then it may look really really good - to you.
If you are picky, then they will look lousy.
It has been said, no less than 10 million times, that converting non-HD material, to an HD format does not make the original source material HD quality. But, this is moreso true with poor quality standard sources such as VHS tapes. This leads to a bit of not-so-typical sarcasm from our beloved Mr. DeBoer here. If he acts up again, just slap him.
I still have about 30 or 40 VHS titles - I am simply replacing them all with DVD titles at this point. In fact, I am thinking about selling or giving away my VHS collection this year. I'll try eBay first - then I'll donate them somewhere.