It probably doesn't make much difference in this matter. Converting between 1080i and 720p is a much more seamless and less painful process than converting SD material to an HD format. Theoretically, you should probably set your HD Tivo for 720p output, but ESPN, ABC, and FOX are the only HD channels I know of that broadcast in 720p- all the rest broadcast in 1080i, which means they have to be downconverted to 720p to display on your set regardless- whether it's by your HD Tivo or your TV.
In reality, most videophiles will tell you that 720p is the superior format despite the lower per-frame pixel count, simply because the frame format is more stable, and less prone to aliasing. From a spatial standpoint- 720p is actually pushing just as much info through as 1080i.
What's really awesome are the new 1080p displays that are hitting the market right now. The next-gen players will be capable of outputting 1080p, but we don't yet know if or when the studios will actually utilize this format. Not to mention the fact that none of us will benefit from it anyway, since our displays aren't 1080p compatible.
Someday, though....someday....
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Home Theater Setup
ISF-Calibrated Hitachi 57S500 HDTV
Denon 2807 AVR
7.1 JBL Venue Series Speaker System
Toshiba HD-A1
PS3 60 Gig
Xbox 360 Premium
Moxi BMC 9022 DVR
Logitech Harmony 880
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