Video quality is about on par with VHS for the normal movies. HD streaming fairs much better with less artifacts and a sharper image. HD streaming is presented at 1280 x 720. Not quite up to Blu-ray specs, but definitely watchable. Considering that it loads in seconds, and that you don't have to drive down to the local corner video store, it is a little slice of digital heaven. I would give the HD video about a 7 out of 10, which is pretty good.
So simple even your parents could use it. Well, maybe not yours.