I have my PS3 connected to my Pioneer PRO-1000HD, which supports all HD resolutions, including 720p, 1080i and 1080p on component inputs, but lacks HDMI. I played a BD version of "Memento" sync'd with the standard DVD version (on a separate DVD player). As I expected (due to HDCP), the PS3 output a 1080i signal over the component cables, whereas my DVD player outputs 480p (progressive upscaling from the 480i source).
My visual impression is that there is NO DIFFERENCE apparent in the images, e.g. it appears that the PS3 is upscaling from a 480i source, not downscaling from a 1080p source. Can this be possible? What resolutions are present on a Blu-Ray Disc?
(NOTE: the Pioneer plasma doesn't have native 1080 physical resolution; it has 768 lines, I believe. So there another level of scaling being done internally in the Pioneer, which has always been excellent. Certainly 1080i images sent OTA or via Cable TV look stunning compared to 480p, hence my total disappointment in what I am seeing from the PS3 playing BD. Something doesn't seem right!)