Question [Q] How's HD video playback through HDMI?

I've seen some nice videos on Youtube from Sony Ericsson promoters displaying Xperia Neo devices HDMI-wired to large TVs and it looks good with photos and videos shot from the in-built camera. But I'd like to hear from your experience playing movies, not stuff you filmed on your camera.

Is it possible to watch HD movies from the SD card on the TV through the HDMI? Does the Neo plays most format to begin with? Does is play any decent format at all with subtitles? Has anyone tried this?