To get the maximum quality playing HDTV videogames and movies you need a display that has HDMI with HDCP and accepts 1080P input. You can use a Playstation 3 with any standard 480I NTSC display or HDTV TV. In the future if you use only the component inputs some BLU-RAY movies can turn on a feature that down converts the movie to a quality that is slightly better then 480P quality. So far no movies on BLU-RAY have the feature where you lose resolution if you are not using HDMI.
As long as your HDTV has HDCP with either DVI or HDMI this will never be a issue. Now if your HDTV only has component inputs possible some time in the future some movies will be lower quality.
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