I recently bought a Vizio 32" plasma (from walmart, $527) for my bedroom and I have an xbox 360 hooked up to it via component cables. The tv manual says the tv is 720p/1080i and I thought the component cables could only display up to 1080i. But when I go to my menu I have a 1080p option and when I select it, it still displays everything fine.

My question is, am I correct in assuming that my xbox 360 is indeed outputting at 1080p and that my tv is able to accept a 1080p signal but then it is converting it to 1080i on the screen?

And if I am correct should I just select 1080i so that my xbox and tv don't have to do unnecessary scaling?
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