Okay, so it's hardly Sky HD or even Virgin Media HD, but IPTV service BT Vision (basically Freeview plus some On Demand content) has shown its HD intent with the introduction of an HD service of its own.
After a test earlier in the summer, BT Vision now has a few HD films available on demand. Hulk, Babe and The Other Boleyn Girl are available for £2.99, with more promised soon.
Hardly earth-shattering news I'll admit, but the price is less than the £4+ Filmflex charge and it shows some intent.
Not sure if the other major IP TV service from Tiscali offers any HD content - does anyone know? For my money IPTV is a non-starter over ADSL connections today, but in the medium term who knows? Virgin Media itself is conducting its own trials in Kent and Sky's On Demand service on the TV depends on it too.