PS3 at the moment does not do any scalling aparently but tell me something, I have my PS3 connected via HDMI and every input except 1080p is selected so when I am on the XMB the PS3 resorts to 1080i, fine, but play back a trailer that you have downloaded that is 720p and it will still show as 1080i on your set so the PS3 IS upscalling??? unselect the 1080i option and the trailers that you have downloaded that ARE 720p look so much better, so much so that I have decided to untick 1080i on the PS3 and just tick it when I decide to watch a BD. If you have downloaded Little big planet from the US PS3 store use this to see the difference from watching it 720p to 1080i...it looks so much better in 720P as that is what it should be viewed at! So can anyone confirm why the PS3 will show trailers that are 720p at 1080i if it does not upscale? Please hurry up Sony and put that on a future update!