Blu-ray in the Flesh

[Sony1]

I first saw Blue-Ray at the Sony center in Berlin 2004, and I was blown away by the images that were displyed. They had tourist footage playing on a new Sony HighDef TV, and I couldn't believe how cristal clear the picture was. Can't wait for it to come out here in the US. My only question is the older movies that were shot in the 80's and 90's, even though they were not shot with HighDef cameras how they be able to produce an Image of 720P with older films?