I have my PS3 hooked upto a 480p samsung tv. I have it hooked up with a component cable same as my xbox 360. My xbox 360 games look better on this t.v. Whenever my PS3 goes to a black screen i can see some pixels popping out from my PS3 wheras my xbox 360 has smaller pixels annd they dont pop out. Is there any way to optimize my ps3 to this t.v. so it is on par with the xbox 360?

While playing on PS3 versus Xbox I usually reduce the contrast and brightness level of the display. In the PS3 setting you only have 2 things to adjust, allow ultra white and full RGB scaling.

is that in the display settings of the ps3? Also i put my tv in dynamic mode. I noticed i get higher levels of black where i dont see pixels. Is dynamic mode a good mode to play on?

Dynamic usually is the display manufacturer preset for gaming. So its probably the best preset to use. If you have problem with white balance or black level try to lower contrast and/or brightness. The 2 settings I was talking earlier are in the display menu. Hope it help!