According to this section of the "White Papers" by Kevin Miller, President of ISFTV, it says differently, maybe things have changed.
"NME’s ML622 and ML777 1080p HD VMD players are the first high definition
DVD players to output true 1080p. Utilizing the Sigma Designs EM8622L chip set
the ML622 and ML777 will output the native 1080p resolution from the disc rather
than adding a second conversion process by breaking it down to 1080i and deinterlacing
back to 1080p, as all current HD DVD and Blu-ray players do. At a
suggested list price of $199 NME’s top-of-the-line ML777 HD VMD player, with
state-of-the-art HD performance and up-conversion for Standard Definition DVD
playback, will be competitively priced with current popular up-converting SD
players like Oppo Digital’s models, and priced well below even the entry-level
Blu-ray and HD DVD players. With true 1080p performance from the players, and
state-of-the-art software transfers, the HD VMD format will offer superior
performance at a lower price than both Blu-ray and HD DVD."
white paper
I just need something for my Sanyo. 
