You folks with opinions need to read the posts :O) No one was saying their TV was doing TRUE 1080 they where talking about what settings they had and what the DVD upscaling option was set too. I think pretty much everyone is aware you can't fit 2 pints of water into a 1 pint pot so obv 1080i is interlacing the picture and it's not a "pure" 1080 full HD image. Yes there is an argument for leaving it as 720p so that the image is produced natively BUT you do get a "higher res" at 1080i just not the "picture definition" of 1080p due to the fact the PS3's video scaler is messing with your output.
Hence if you want the best picture quality and no/little processing then run at 720p. If, like me, you want the menus smaller and more defined, then run the system at 1080i and your games at 720p.
But then you/we don't complain when a lot of games upscale from a bizzare res to 1280x720 to achieve the reported "720p compatability". The likes of Drakes Fortune, Lego Starwars, Heavenly Sword etc don't run a native 1280x720p res they are upscaled by the PS3 to output resolutions before leaving the video buffer.
Hum.. I've rambled... what was my point again?? ;O)
cheers all
moose