A:Answer 1600 x 900 is considered to be 720P - only 1920 x 1080 is 1080P - but the display on this machine is very crisp and clear, something I wouldn't notice over a 1080P.
The colors are a bit washed out and the angle is not the greatest but there are alternatives if you are into that because it has a built in HDMI out and a VGA out port.
Both are HDCP which means you can play a show on HBO from the computer to your HDTV and it will play, unlike not those who don't support HDCP, they will not allow you to play a movie from your PC to your TV using the HDMI port, things like HBO, Showtime, all the premiums that use HDCP technology.
I did use the HDMI out to another LCD External Panel Display, and wow, that produced a 1080P picture without any issues, and quite clear and colors were perfect, so it is all about the display, what type of display you have, not the machine. Hope that helps.