Its painful isn't it selecting the correct settings everytime you want to play a 1080P game on the Sony lcd's! One thing you failed to mention then is that if you dont go back in to select the others again after game play is that you will get 576P default for the next 720P or 1080i game!
You would think being a Sony brand that they are compatable and would default the highest resolution but nooo...
My Samsung HD set defaults to the highest setting of 1080i even with the others selected but its not a full hd set.
One other thing to people using an older Panasonic HD (1080i capable) rear pro tv was that in the XMB main page of the PS3 you could not select 1080i but had to leave the settings as 576P even though this tv was 1080i capable, however when in game would default to 1080i if the game was capable of out putting this resolution. Weird huh!