Thanks for the help guys. If you have the time, can you take a look at this and let me know if this sounds right or not. I appreciate it.
This is a post taken from the OpSports forums regarding NBA 2k6 for the x360 and the contrast between 1080i and 720p :
"Well, they're not exactly the same. The way i understand it is that at 720p, you get 720 horizontal lines drawn every frame. So if your media runs 30fps, you get 720 lines drawn on the screen simultaneously and stay on the screen for a full 1/30 of a second. If it were 60fps, you get 720 lines displayed 60 times a second.
1080 interlaced means that there are 1080 horizontal lines drawn (higher res), but they aren't displayed on the screen simultaneously. Instead, they're interlaced, or every other line is drawn simultaneously. In other words, half the lines are displayed for 1/60 of a second, then the other half are displayed for the other 1/60 of a second, alternating. Your brain then puts it together. this is not to be confused with 540p, which is something else...
Just ignore all that. the bottom line is that, technically, 720p should look more fluid, while 1080i should have higher visual quality, especially if your media isn't moving along very quickly. So, for example, i think ESPN is broadcasting in 720p instead of 1080i. Anyway, if you're moving at 30fps, 1080i would be the way to go. At higher frame rates, 720p should be your choice.
However, i'm playing it at 1080i, because i'm pretty sure this game isn't moving at 60fps. I could be wrong. I've tried them both, and the results are pretty much as predicted: 1080i looks sharper, while 720p seems like it runs more smoothly. Your choice. The difference either way really isn't noticeable unless you're looking, and even then there's not that much of a difference."