OK, I only read the first few responses to this thread and saw that people initially reacted to the poster by insulting him. But what he says is absolutely true.
"On Xbox 360, HDTV owners can choose between 720p or 1080i (and now 1080p, if we're talking HD-DVD movies), but as PlayStation 3 owners have started tinkering with their machines, it's become apparent that 1080i is currently unsupported, at least by the machine's many launch games, as 1080i-only HDTV sets are forced to experience the visuals at 480p, rather than scaling to an HD resolution of 720p.
IGN tested the spreading theory, and confirmed the issue with Resistance: Fall of Man, NHL 2K7, Tiger Woods PGA Tour 07, and Need for Speed Carbon. 480p is the highest resolution possible on standard-definition television sets running via component cables -- it provides a solid picture, certainly better than composite or S-Video, but far beneath the visuals you'd expect from a HD-capable console.
No one knows whether this is a technical or software issue at this point, or if Sony and software publishers can address it via patch sometime soon. But if Microsoft can add 1080p support a year after launch, we're hopeful. Stay tuned."
http://www.1up.com/do/newsStory?cId=3155303
"The older your HDTV is, the more likely it is to support a subset of the formats currently considered "high definition" by the big guns of the console markets. Many of these sets support 480i, 480p, and 1080i, but are incapable of displaying the 720p signal that many next-generation games render at. While the Xbox 360 is known to upscale to 1080i in the event that a television doesn't support 720p, Sony's entry in the next-generation console war apparently inexplicably does the opposite, downscaling the image to the significantly less desirable 480p mode. It is not yet known if this is a simple oversight than can be corrected with a software update, or something more troublesome.
Of course, this might fall under the category of "problems you want to have," given that getting your hands on a PlayStation 3 amid the current shortages and eBay feeding frenzy could be next to impossible."
http://www.gamepro.com/news.cfm?article_id=86828