Does Arduino Uno have max 8-bit or more resolution?

Hi,
Hi I've just read a tutorial about Arduino resolution and it says: "The analog to digital converters (ADC) in the Arduino are considered to have 10 bit resolution. The bits of resolution is an obfuscation that means 2^10, or 1024 divisions (0 to 1023), of the reference voltage.." Doesn't "ATmega328" on Arduino Uno board have max 8-bit resolution? And doesn't that mean voltage is divided 256 steps? I'm a newbie and I thought I might be fundamentally wrong about these. Any input would be appreciated.
Thanx