"Coax cable" can be a lot of things, but in this case you likely mean HDTV broadcast (ATSC) or over cable TV (QAM).
Both of these systems support up to 1080i.
From the FAQ on the page you linked:
> Using the WinTV 7 application the WinTV-HVR-950Q, will record in a transport
> stream (TS). For ATSC and Clear QAM digital TV recordings, the recording format
> and bit rate is exactly the same as the broadcast format (i.e. ATSC 1080i is
> recorded at 1080i). For NTSC analog cable TV recordings, our SoftPVR is used
> to create Transport Stream files (TS)
This does of course require that whatever you've tuned to is *sending* 1080i. If your broadcast station or cable channel is running at 720p, that's what you'll get. That is probably what is happening in avdaddy's case.