This week is the 1080p upscaling week apparently. First we reviewed the neodigits Helios H4000 1080p upscaling dvd player, then Pioneer introduces the DVR-940HX and now Sony made some remarks in Japan about the possibility to add 1080p DVD upscaling to the Sony PS3.

As reported the Sony PS3 has issues with some old HDTV sets not being able to display 720p.
The Sony rumblings about adding upscaling via a firmware update also gives hope that they also might be able to output 1080i on the HDMI interface to be compatible with these older HDTVs. Also the 1080p with 24fps seems to be not enabled yet on the PS3. I hope Sony designed the PS3 Hardware flexible enough to improve things with software updates.
More details on Engadget. More Sony PS3 News.