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Blu-ray is encoded in 1080p. Since your TV only supports 1080i, you are only getting half of each frame per refresh (the "i" stands for interlacing which means that only every other line is drawn per refresh cycle). Some people can't tell the difference, but I can see the slight flickering that occurs on 1080i vs 1080p.

My suggestion is to watch a blu-ray on a 1080i TV and a 1080p TV side by side, and see if you can tell the difference.

Hickman
 
Blu-ray is encoded in 1080p. Since your TV only supports 1080i, you are only getting half of each frame per refresh (the "i" stands for interlacing which means that only every other line is drawn per refresh cycle). Some people can't tell the difference, but I can see the slight flickering that occurs on 1080i vs 1080p.

My suggestion is to watch a blu-ray on a 1080i TV and a 1080p TV side by side, and see if you can tell the difference.

Hickman

This man is correct.

You can also tell your Blu-Ray player to downscale to 720P and that way there will be no flickering. Though honestly I doubt you will be able to tell the difference between 720P, 1080i and 1080P on a 40" screen.
 
For that size it will make a significant difference unless you're sitting really far away which I doubt you are at that size.
 
My TV holds a special place as both one of the last CRT rear-projection HDTVs and also one of the first to have an HDMI port. It's going on 6 years old now and I haven't felt the need to upgrade, even though it doesn't support any resolutions other than 480p, 540p, or 1080i.

IMHO, you will be fine for another year or two, and waiting for 3D-ready sets to come to market. If you absolutely feel you NEED a 1080p set now, I'd look into the discontinued Pioneer KURO sets. They have absolutely great contrast and black levels, as long as you don't buy into the plasma stigma that killed the market for them.

In short... Blu-rays will still look great in 1080i, especially on a 40" TV.
 
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