A while back I got in on the Planar 7060 deal from TD...I have been in ocular heaven ever since. I have been watching dvd's and streaming via 360. (Probably not the optimal setup, but no budget for bluray/or upconverting Oppo in the forseeable future.) I have a launch unit, (even though it was purchased almost a year later than launch...) hooked up via VGA. Upscaled, movies look very good to me, noticibly better than 480 via my Onkyo 6-disc. 360 is set at 1024x768 resolution to minimize overscan. The Planar recognizes this in the resolution description at startup. It will accept a 1080 signal, but to my eyes, it looked very blurry, almost out of focus.
I have noticed no obvious audio sync issues, while watching movies, but I have noticed, mainly gaming, Gears 2, guys in ranked matches blowing right through me before I even see what happened. Now, I am by no means a "good" player, but I was mediocre at Gears 1, and could hold my own ok. Now it seems that I REALLy suck. (Which could truly be the case...)
So, my question, I guess, is two-fold,
a.) Will I see a difference in lag issues by switching to native 720?
b.) Does anyone think that video (streamed or direct) look any better if I set the 360 to 720p.
Note: I have tried, but not for an extended time.
Note 2: De-interlacing is "off" on the Planar.

I think switching the 360 to 720p will help exponentially...basically you are adding more processing time to the projector (its usually below .3 seconds...but still noticable in fast moving games).

Let me see if have this straight. This guy has this fairly rare machine. He wonders if he will see differences if he runs it in a particular mode. Rather than try it himself he asks strangers who probably don't have this machine what it will look like. He also seems to be getting worse scores on some obscure video game.

It sounds like he's suffering from Heredopathia atactica polyneuritiformis. I saw this once on House.

Well, as I stated, I have tried it...just not for an extended ammount of time, with no "noticible difference to me...and the Planar pd 7060 was a pretty hot topic here when I purchased, soooo let's see...a COUPLE guys may still have it. (even though upgradeitis IS rampant here...) And there are a lot of gamers here. And, it's not necessarily a "brand specific question". I have read many a post about the issues of resolution, lag etc...and we do post here everyday for other's advice...and seeing how there IS a difference between Gears 1 and Gears 2 gameplay...I have also been following the Gears 2 thread....

You should output at native res. For one, things should look better. For two, less scaling should result in less lag.

Disable all advanced processing options such as DNR, etc.