After enabling game mode, there isn't any processing that can be cut down to reduce the lag. It still has to process the signal coming in from the PS3 to both 120Hz and 1080p.
I recently purchased a LN40A650 in America. My firmware is 2007.0. Even after I place the television in "Game Mode" I still experience a slight response lag between the input on my Playstation 3 controller and the action on screen. The Playstation 3 is connected with a HDMI cable.
Is there anything I can do to reduce the lag (i.e. firmware update, optimized settings, etc...)?