read the thread man. read it. its not just me having this issue. this is a worldwide sony-admitted issue. i don't know what you're on to, but better investigate your setup. because the latest firmware doesn't solve anything with regards to scaling.
i repeat, read the thread. for old HDTVs that don't support 720p, games get downscaled to 480p if devs don't code 1080i. i guarantee it.
and i dunno about your lbp playing at 1080i/p thing, because i along people in that thread have confirmed that it doesn't scale there. i believe you were just not paying attention when your resolution changed. i repeat, the LBP beta definitely DOES NOT SCALE TO 1080.