Seems now days, that there isn't anything those devs can't do with the Nexus One. One of the Devs over at the xda-developers site has posted his update to get 720p going on your Nexus. In order to get this to work you will need to have the Froyo Radio. Also it is for Cyanogen CM5.0.8test3. it will not work with Froyo as of yet. But charnsingh_online says that he will have it working for Froyo, Rooted of course.
The Dev also gives his props to the the Greats.
Google, Cyanogen, maxisma, Wysie_Soh, barakinflorida and more for their support, teaching inspiration and work
So hit the link to get the update.