"So Ive found pretty quickly that the PS3 has some MAJOR High Definition scaling issues. Its affecting almost everyone in both games and movies. Many games made for 1080p wont scale properly to 1080i, and sometimes 720p. Im having a huge issue with Blu-Ray movies. It shows as 1080i (even though I have my HDTV setup as 720p in the Media Bar), but its very grainy and looks like standard DVD. I spent 2 hours on the phone tonight with Sony Customer Support trying to troubleshoot the issue. The first guy I spoke with for 45 minutes, and he was about as smart as a retarded monkey. He was basically telling me that my HDTV was broken because it cant display 720p, even though I told him some games and all downloaded content displays fine at 720p. He wanted me to try a few things and call back. So 20 minutes later, I called back and spoke to a fairly helpful woman. After reading what happened in the last phone conversation, she put me on hold for 2 minutes, and came back and said its a known issue that is being looked into. I told her how angry I was about spending a shitload of money on a PS3 and Blu-Ray movies for it all not to work as it should (and highly advertised by Sony). She said a firmware update should be available in the next couple days and that their team is aware its a major issue and will be fixing it quickly. Yeah, Im sure that means 2 months before we see anything."
Thank god as I just grabbed a 1080i Native Plasma.