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Sorry for replying to my own thread but solution is here.
The DVD player was the problem. (For some reason) Region 2 Sammy HD850's come locked so that only 575i or 576p can be output over component. The multi region hack allows further resolutions to be output, but when it was applied I couldn't get 1080i. Changing the TV system type to NTSC from PAL sorted this out and now DVD player displays all resolutions over component. Don't know yet if I'll encounter HDCP problems like this but there is a hack to remove HDCP too!
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