Question about PS3 and TV resolutions, PLZ help.

[sonyc]

Ok Im a little confused here about what the PS3 can upscale to and what formats use what resolutions. Heres my questions.

1. Can Blu-ray Movies play in PS3 in 1080i AND 720p? If so If I have 1080i and 720p checked to use it will upscale it to 1080i Right? And which looks better for movies/games?

2. Regular DVDs, do they all use 420i/420p? or can they go any higher?

3. Games, resistance uses 720p, if i have 1080i checked will it downscale it to 720p? or will it downscale to 420p?

I hear that there might be some firmware updates to fix some of the resolution issues, what are the resolution issues? and will there be updates?

Sorry for bombarding with questions, I just want to understand it all once and for all.

By the way if it helps anyone in explaining which resolutions to use, my TV is a 32" Samsung LCD flat panel HDTV, resolutions are 420p,720p,1080i. Please answer my questions so I know what Im doing :P thanks in advance!