Ah, i want to have the widescreen (High Quality, not High Definition though :P) thing too, but i can't have it fullscreen, my monitor resolution is 1024x768, any ideas?
i have thesame resolution as you, and what i do is record 840x480 then after I edit I render 1280x720.
And youtube makes it HD automatically, except you said you wanted high quality, don't know how to do that :/
I don't like the HD button very much either, choppy for me.