Converted from HDDVD - Picture Worse

[jbeuchert]

Anyone that can advise would be greatly appreciated. I was using an HDDVD player Toshiba AC3 model 1080i on a BenQ PE8700 projector that runs 1080i natively. The picture was flawless, I loved it.

I have now moved to Blu-Ray, running Sony's BDP-S301 player and after some tweaking to the configuration settings on the player, the picture quality is close, but now I am seeing jagged edges on lettering (screen credits etc.) and table tops or other square images in the picture.

I know my projector is older, but again, running the native 1080i machine i could not have been more pleased with the picture. Shouldn't the sony player downscale to 1080i to fix this issue? Is there a setting I am not aware of? Anyone else out there seen this issue?

Thanks