Blu-ray 1080p playback issue on PS3

[bkdc]

I LOVE my new PS3, but I'm having a really annoying issue with 1080p playback. Games and video game previews in 720P look fantastic. 1080p pictures are sharp but there is a very annoying cutoff line about 1/5 of the way up from the bottom of the screen.

When there is rapid motion on the screen it seems as if the picture above the line are part of a different "frame" compared to the picture below the line. So with very rapid motion or action, there is a cutoff as each frame is advancing. The picture above the line seems to be either a frame ahead or a frame behind the picture below the line of cutoff.

I paused the picture and did a frame-by-frame advance. Each time the picture advances to the next frame, it seems to refresh the picture starting at this cutoff only when the frame is advancing. Once the complete frame is advanced, the picture appears normal again.

I am wondering whether this is an issue with the PS3 or whether it's an issue with my television. I updated to the latest firmware and changed the HDMI cable and I'm still having the same issue. I'm thinking it's an issue with the PS3 video processing.

I have the PS3 hooked up to a Westinghouse VK-42F240S 1080p television via a HDMI1.3a cable.