Xbox Live's Major Nelson has acknowledged that some users are having problems with the color space on video playback following the recent Xbox 360 dashboard update, and promises that a fix is on the way. The issue relates to black levels and washed out colors in videos, though game playback is seemingly unaffected. However, Microsoft is apparently ignoring separate complaints regarding the console's resolution output — specifically, that the new dashboard artificially restricts 1080p playback to content from Microsoft's own Zune Marketplace. Eurogamer has confirmed that all non-Zune content is limited to 720p output, which seems like a clear strategic move by Microsoft to get people using their store. Additionally, some users are reporting errors that seem to be caused by an HDMI handshake issue, with Microsoft staying mum on this subject too. We'll be sure to let you know if we hear anything more about when the fix may be coming, or what exactly it'll fix.