If you know your TV can accept a 720p signal, try setting your TVs maximum resolution to 720p. For some reason, the PS3 thinks 720p is superior to 1080i in resoluton, so when you select 1080i as your maximum resolution, it only selects 480i/p and 1080i, but when you select 720p as your maximum resolution, it chooses 480i/p, 720p and 1080i. That should fix most people's problems.
“An engineer explained to us that hundreds of ear impressions were gathered in the name of research, and while each one obviously boasted its own unique shape and size, one single characteristic remained uniform across the board: the entrance into the ear canal is not a perfect circle, it's an oval.”
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If you know your TV can accept a 720p signal, try setting your TVs maximum resolution to 720p. For some reason, the PS3 thinks 720p is superior to 1080i in resoluton, so when you select 1080i as your maximum resolution, it only selects 480i/p and 1080i, but when you select 720p as your maximum resolution, it chooses 480i/p, 720p and 1080i. That should fix most people's problems.