Yeah I have seen that nd that too in 1080 p, and I must say it was a fantastic movie. Franco has done a fab job and coming to your second question, yes it is a real life incident happened at grand canyon. The movie portrays a mans courage and gives people inspiration to take right decisions!
There is a show in Discovery channel there is a show called - survivors and many opther shows which reconstructs real incidents like this. It is a great movie an must watch and is 100% true and in the credit rolls the real persons photo is also shown.
Another fab factor in 127 hours is its sound track, given by none other than our mastro - AR Rahman!