@farmerman,
One can purchase their own NetFlix ready branded box and hook it up to the cable and the TV input -- it's $ 99.00. LG is famous for building in this stuff, except it's made some really costly mistakes in the past, sticking in plug-and-play DVD players (like in a laptop) into the chassis of the flat screen, including a cable card slot when the cable companies weren't totally supporting them, and other venturesome flops.
But the NetFlix electronics built in is a successful brainstorm. I'm not sure if they don't copy guard like on the software DVD's, but the fact is you can't make a copy of what you see streaming as you can't store the actual movie. You can't burn streaming video. Whether they will ever loosen up and let one store on a DMR (a DVR which not only stores on a hard drive but will burn discs), I don't know, but right now it's as good as being copy guarded. You can watch NetFlix streaming movies on your computer, but same problem. Real Player has a download video feature but, again, that can be blocked (I've run into that where the Real Player "Download this video" pop-up will not appear).
Also, last time I looked NetFlix did not have any hi def streaming movies -- they were all 480p DVD quality, but with possibly better PCM sound.
From the NetFlix site:
High Definition Encodes
Today we have rights to deliver about 400 streams in HD (720p). More titles will be added over time. We experimented with first-generation WMV3 encodes at 4000kbps and 5500kbps, but settled on second-generation HD encodes with VC1AP at 2600kbps and 3800kbps, which extends their accessibility down to lower home broadband connections. As with SD, encodes of film material are at 24fps, and encodes of shot-to-video material are at 30fps (or 25fps for PAL), rather than the 60fps that would come from a Blu-ray disc - we judged the 60fps content as too expensive of bandwidth for now. In general, these encodes are definitively better than SD, but won't challenge well-executed Blu-ray encodes - that would require a bitrate out of reach for most domestic broadband today. We believe Moore's law will drive home broadband higher and higher enabling full 1080p60 encodes in a few years.
So the picture you are getting is technically not HD, but ED (Enhanced Definition) but you won't read any promotions really explaining that -- it's a commercial video standard (like companies use for displaying product) and some broadcasters like TBS, who are not upgrading to 1080i (1080i still offers more pixels than 720p and that's what you are mostly seeing from all the HD broadcasters). Wimbleton today is in 720p as I guess their satellite is having problems from England. It's a remarkable difference as they tend to stretch the picture and Roddick looks like he's been hitting MacDonalds a bit too often.