Joe DeFuria
Legend
As per the thread you linked, if you force your PS3 to output 720p and exclude 1080i, it'll only output 480p for BD playback. So you need to let it output 1080i and let your TV do the rest.
Can the PS3 be set to default output for games at one resolution, and BD movies at another? If not, it can be a significant annoyance...in many cases having to reset the output resolution before starting a BD movie...