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The 7205 can't output 1080i, it can only output 720p, since it is a native 720p display. The difference is the input.
If it's saying 1080i then you need to change the output on your player to 720p, then keep the 7205 either in 16:9, or if you have a 720p input you can use the native setting (one before 16:9 on the toggled aspect ratio button). The native setting bypasses all procesing on the 7205, whereas 16:9, or 4:3 enables it. Additionally, if you have a 1080i input you have to use 16:9, since the native setting will show an incorrectly scaled image.