This falls under the category of: I hope it's true...but I wish it wasn't.

The pic comes from Xbox-Scene, I don't know much about it and neither does anybody else...so your guess is as good as mine as to whether it's legit or not.

But here's a two reasons why I think this is legit:
1) Microsoft can put HD-DVD in the 360
2) It would be nice to have full digital output

I just hate the idea of my premium 360 package being second to another Xbox. For the good of the console, however, I do hope that they is for real. Even if they don't put HD-DVD inside the unit itself, I'd really like to see the 360 have an HDMI output.