You're using "Studio". I looked before, and I double checked after your post: "Cinema" doesn't appear to have that option. I'm not sure if "Studio" would wok with the "Cinema" webcam because it would probably try to install a different driver, so that brigs me back to the original question:
"Does NXT2 allow "Capture Video" to record in 1280 x 720 HD resolution?" (My current NXT version does not.)
If NXT2 doesn't have the HD, I may try "Studio" (Both "Studio" and "Cinema" are version 3.6, so MAYBE they would be compatible.)
Thanks for the input.