Many movies are shot at 1080P and 2K these are common resolutions for digital cinema cameras - (it may goto 4K eventually but it's still a way off) . 1080p scales well to a 20Meter cinema screen.
Regards Upscalling it's a joke if you cant tell the difference move closer to the TV or buy a new TV capable of 1080P ( sales people will sell you 720p resolution and tell you it's 1080p capable BIG difference ).
HD will start to look like SD when you are 4 meters back from a 40inch display. But movies are meant to be watched with a wide view angle you should be sitting back no further than 3* the diagonal size of the screen - The ideal distance is around 1 to 2* the diagonal screen size - pretty much how you would see it in the cinema sitting between 10-50 meters back from a 20meter screen.
Ie 2 meters back for a 42Inch display is good - you get the full immesive effect and see all the detail as you would sitting in the cinema.
PS3 number 1 fan
