The Zune wasn't even on the market for a week before an iPhone app was ported over. Foundation42 has announced in a tweet that it only took 12 hours to pull off, too: "From #iPhone game to #ZuneHD game in 12 hours using #MonoTouch and #XNA - http://bit.ly/2O3y6Z - enjoy!"

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My knowledge of coding is pretty limited so I can't say if it has anything to do with the port. However, my image is a cropped version of this: http://www.geeky-gadgets.com/iphone-game-ported-to-zune-hd-in-12-hours-21-09-2009/

I believe the picture used at geeky-gadgets is a mash-up of the two images at the bottom of the developer's site: http://foundation42.com/

The Zune HD image there is of a lower quality, I believe. It is also a little smaller, so it was possibly resized when the two were put together -- which probably caused further quality loss.

*Edit*

Heh, I linked the TS news article instead of Foundation42's website. Sorry.

I watched the video following the link but couldn't tell whether the bad resolution images were present in the live port. I imagine that in a worse case scenario, this is more of a technology/development showcase for porting software and plain images have to be reworked still to fit the different screen ratios.