Multimedia / Gaming. IVA 2+ a second-generation, power-optimized version of TI's imaging, video and audio accelerator used in TI's DaVinci™ technology provides up to 4x performance improvement in multi-media processing versus previous OMAP processors. The increased capabilities of the IVA2+ enables multi-standard (MPEG4, H264, Windows Media Video, RealVideo etc.) video encode and decode at DVD and up to 720p resolutions. With the advanced multimedia capabilities of the OMAP3430 a multi-standard DVD-quality, and up to 720p-quality camcorder can be added to a phone for the first time. In addition, the ARM's vector floating-point acceleration, coupled with the OMAP3430's dedicated 2D/3D graphics hardware accelerator, provides outstanding user interface and gaming capabilities.
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So, with that said, it's true that the Droid (original) can be unlocked to record at 720p