HTC HD2 picture and video quality demo have published a short movie made entirely with HTC HD2 video footage, and note the quality is quite good, and he feels better than HTC’s previous efforts, with good performance with action scenes, and good image stabilization. 

They did say they expected at least DVD quality recording rather than VGA, but continue to hope for an update that bring this.

Regarding the pictures (at the end of the video) they note these are also of good quality, and in the video they certainly look good.

HDBlog also have the original, uncompressed files available to download for even better comparison without YouTube compression.

Read more at HDBlog here.