Hey guys, I turned the sharpness way down on my TV and put my Ps3 into 720p and it looks a decent bit better..
Give it a try.
Even if you have all the options (720/1080i/1080P) turned on, the console will choose the highest one possible for the game (in ps3's case 720p).
Also most tv's (all 3 that i tried did this) adapt. By this i mean: even if they can go all the way up to 1080P, they will stay at 720P.
Turning sharpness down for me only made the game slightly blurrier.
So yeah... Thanks for the tips tho