No 720p output on Pioneer's BDP-05FD

[gem58]

I received my new Pioneer Elite BDP-05FD Blu-ray Jan. 15th. Updated the firmware Jan. 16th. Now on Jan. 17th. I'm ready to ship it back to the dealer.
Not because I don't like the machine but, my understanding is this player is capable of outputting 720p. That is only true when the source material is 720p. If not, it outputs 480/60i. That's DVD resolution. This is a major disappointment. My HDTV is a Samsung 56" 720p DLP. I purchased it in Jan. 2004 and for the most part, it's been reliable TV. I really can't justify replacing the TV after only 5yrs. and a price tag of $4200. To add to the problem is my receiver (Denon AVR-3805) not HDMI or DVI ready. But does that mean I can't enjoy blu-ray? Does anybody have any ideas on how I can this solve this problem without purchasing a new display?
Any suggestions would be greatly appreciated.

Thanks in advance,
Garry