@Sardauk
Your TV is fine. It is telling you that KZ2 is in 720p because it's not being upscaled by your PS3. So it's the TV that upscales it to its native resolution (1080 I suppose).
In Gears case, it's being rendered at 720p (I think it supports 720p and 1080i, like KZ2), and then the upscaler chip inside the 360 upscales it to 1080p, and that's correctly recognized by your TV.
In one case you're upscaling using the chip in your TV, in another you're upscaling using the chip in your 360, in both cases the rendering is 720p.
@NNN2004
Upscaled 720p is usually good enough, especially in motion. Note that it works for all consoles: as I said, if you feed a 720p signal to a 1080p TV, then the TV circuitry will upscale it. The only downside is if your TV has a really bad upscaler chip, then it might be better to let your console do the upscaling work.
