Ive noticed no jaggies or lag issues when doing 1080p or i. I have noticed allmost every game supports 1080i or P though. Only the older poorly made games dont. Most A or better titles actually do 1080 and the cheaper 3rd party games upscale the images. Still never really noticed any jaggies or flickering though. Very strange for you to have this problem. My guess is that the 360 is set to 720 and is trying to downscale the 1080 images then the tv is trying to upscale them again. Now that would cause problems.
Problem with SOME PS3 games to this day is they scale at 720p. Take Resistance 2 for example. Bet alot of people did not know that its a 720p game. It made me blank stare at my tv for about a minute... still a fun game just surprised me a bit. :D
"Leap ignorantly to the defense of wealthy game company’s, who don't know or care about you!"
