VS Pro X2 "End-to-end HD" HOW?

[maxblack]

Installed this today and updated with the Nov patch (says 12.0.98.1 Pro) and I'm immediately stumped re: working with HD. I've opened a short movie from a BD (1920x1080 DD5.1) that looks OK in the timeline, and plays, but the Project/header info says my project is "DVD NTSC 720*480 - Stereo" and I can find no way to change that. If I go to File, Project Properties, Edit, General, the best resolution (frame size) I can select is 720 x 480, and further, the "User-defined" radio button is greyed-out.

How to work with HD > 720x480 with this program i.e. edit and output to HD res? Can someone tell me the magic?

P.S. the quote above, "End-to-end HD" is from the retail box, which is what inspired me to buy this. "Everything you need to easily create great movies - even in HD!"