Blu ray looks like SD dvd

[toofastgtp]

Hi im a new guy. No stranger to home theater and that.
Got my new Sony S350 today and am very disappointed with the quality.
First off
TV: Samsung HPT 4264(720p/1080i) and again player is new sony s350 via HDMI.

I got Iron man and the new Indiana Jones movie to start off the new blu ray collection. I already have iron man on reg dvd.

Thing is the movies look like i am watching a reg dvd on my old non up converting dvd player. I have tried both 720p and 1080i settings and there is no difference. I decided to put my reg dvd iron man in and there is no difference in picture quality. Sad thing is my satellite HD looks 10x better then blu ray. I know picture is suppose to be amazing. Heck even my friend has exact same tv i have and he has a ps3 and i remember watching Planet earth on it and it looked so real. Am i missing something here or am i just expecting a big difference from standard dvd to blu ray. I really thought there be a difference like going from standered satellite channels to hd sat channels.