If it is a new TV it will not be a problem. That downscaling problem only concerns much older HDTVs.
I plan on buying a Sony XBR970 when I get my PS3 so I can enjoy all it's HD goodness unfortunately according to Sony's customer service it will accept a 720p signal but upscale it to 1080i. I understand the PS3 will downscale all 720p content to 480p on a TV's that only display 1080i, first of all is this true? Second of all if so then what will happen on this particular TV? Will the PS3 output a 720p signal and the TV will then upscale to 1080i or will the PS3 just downscale to 480p taking away all that high def beauty?

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