Try setting the video mode on the 360 and PS3 to 1080?
I recently bought a Mitsubishi DLP 73642 television. Cable looks great, BluRays on my PS3 look amazing. Only issue is that my video games look horrible. Last generation graphics quality. I have no idea why this is. PS3 AND 360 both look hideous. As mentioned before, the BluRay movies on the PS3 look stunning, which makes things even more confusing. All games are compatible with 1080i/p. Does anyone know why this is happening and how I can correct it? I'm using the HDMI made specifically for the PS3.