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I had my PS3 for 8 months before I bought an HDTV. It was a great way to enter the current generation, because it allowed me to be blown away by the PS3 when I first bought it and again when I saw it in it's full HD glory. Even before I bought the HDTV, I was buying my movies on Blu-ray because I knew I would get one eventually.

My TV is 1366x768, but it accepts a 1080p signal which is what I set the PS3 to since I prefer the TV downscale 1920x1080 pixels then upscale 12XXx720 to get to its native resolution. It scales really really well. :)