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kn said:
Here you go.... all you need to know. Get the 720P and move on with your life.

http://blog.hometheatermag.com/geoffreymorrison/0807061080iv1080p/

That tells it like it is. Let me take a quote from it for you:

"When it comes to movies (as in HD DVD and Blu-ray) there will be no visible difference between the 1080i signal and the 1080p signal, as long as your TV correctly de-interlaces 1080i. So even if you could input 1080p, you wouldn't see a difference (because there is none)."

They mean on a 1080p tv.  1080p tvs deinterlace a 1080i signal and display it in full 1080p.  However, if you only have a 720p/1080i TV, it will display in 1080i at max.