hey,
I have a PS3 and a TV that is capable of 720p and 1080i, and I prefer 1080i. Although progressive is a better method than interlaced, all the extra lines of resolution you get with 1080 over 720 really really help the picture. I think 1080i is definitely the way to go unless you have the funds to get a 1080p set.
just my two cents...
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