PS3 Plays Games in HD but not Blu Ray Movies

[JVC]

I recently bought an HDMI cable to hook up my PS3 to my TV. The TV is about 4 years old and the highest available resolution is 1080i. After hooking up the HDMI cable, I switched the display settings on the PS3 to HDMI and 1080i and the games play fine without any problems and look great. DVDs also work fine and play in the OAR. However, I tried playing several different Blu-Ray discs and the video didn't work for any of them. The audio works for them over the HDMI but all I see is the blue AV screen and no movie image. Each time, the disc loads and then I see the update to BD Live screen for a brief second before the screen goes blue. The Blu Ray discs played fine when I was only using a composite AV cable. Do I have a system setting on the PS3 set wrong? Any help is greatly appreciated. Thanks.