Yep. People are complaining from all corners of the net (Neogaf, Digg, etc) that PS3 does NOT support 1080i, thus forcing sets without 720p inputs (Projection Tube and CRT) to play in blurry 480p. What an absolute misstep for Sony... Hopefully they rectify that one in a fw update.
That's one reason I waited 2 yrs to get my tv and also making sure it had HDCP (high bandwith digital content protection) which was mention in a artical in EGM or OPM. In the manual it says it does support 1080i but again maybe those tvs are older and don't have hdcp. I have 1080p samsung and it's looked amazing, but do think ppl will have to upgrade or they will have problems. The other thing ppl should have educated themselves before investing in the TV they have if one reason for it was playing the ps3.
PS3 DOES support 1080i, it does not however upscale games that are 720p to 1080i. But if the game were 1080i compatible then the PS3 would display it in 1080i thus supporting 1080i.
I was thinking the same thing. It is obvious really. This is not like an upscaling DVD player (to which I own). It was reported ages ago that games in lower resolution were not going to be upscaled to 1080i/p range.