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I can tell the difference easily with my 32in 720p, We're getting a 42in 1080p in a couple days and I am sure I'll noticce an even larger jump.

Also, if you are watching you HD movies in 1080i and upscaling your DVD's to 1080i then of course you're not going to notice much of a difference in the two. I play my HD's in 720p and my upscales in 1080i. Try that and see what you think then.