Hi there,
With a HDCP-compliant DVI input, your monitor will accept a protected digital signal from the PS3. All you need is an HDMI cable with DVI adapter, or a simple HDMI-to-DVI cable.
With its native resolution of 1680x1050, it can't display a true 1080p image. Some displays can accept a 1080p signal can scale it down, but the w2207 doesn't appear to be able to do this.
You will have to use 720p. This is definitely high enough resolution for a 22" screen, but there are two reasons why it might not look good:
1) the hardware scaling up to 1680x1050 is poor.
2) it is incapable of doing 16:9 aspect scaling.
From the
thread at [H]ard|Forum, there are reports of this monitor stretching the 16:9 PS3 input to 16:10. A shame, but quite a common problem with monitors, especially on the cheaper TN panels.