Apple TV / TV optimal settings?

Hi
I love my gadgets but I'm a little bit thick when it comes to some parts of operation / set-up.
I've got an Apple TV and Toshiba Regza AV Series HD Ready TV. I've set it up to what I think is the optimal setting for screen etc but I'm now doubting whether I've done it correctly all this time.
I've not been sure about difference between HD Ready and HD active TVs and when I've viewed some trailers supposedly in HD they've not really 'stood out' as I'd expect them to.
I've got my present settings at 1080i HD but there is a 1080i HD 50hz. Not sure if either is correct. Also the HDMI output is set to Auto. Is this correct too?!?
Told you I was a bit clueless. Your assistance would be appreciated.

You have another choice - use your own eyes to decide.
Even on a non-full HD set I could discern improvements going from 576 i/p, through 720 p to 1080i/p - fonts looked less pixellated and smoother on higher settings. Sam observed on a full HD set.
Stick the set on a menu and cycle through video options to see what looks best to your eyes. This is of course for static images, but you could watch a short clip of video ateach setting and decide.
Yes 1080p is theoretically best but there are many factors involved and what;s right for one person isn't for another's set.
For menus/pictures AppleTV can do up to 1080i or 1080p if your set/AppleTV combination allows (some only allow 1080i), but for video it's up to 720p at 24/25fps.
For iTunes store content in HD I assume they're using 24 fps for movies, so 60fps (in essence NTSC rates) standard settings (which don't say 60fps) will probably work better as the rate is 2.5 times the movies rate, whereas using 50fps with 24fps doesn't scale quite as nicely mathematically - it's all theoretical though and I can't see much difference on AppleTV between the standard (60Hz) and 50Hz setings. YMMV which is why I suggest trying short clips to see.
As for the HDMI Auto setting - probably fine for most people, but the 2 that make quite a difference are the light and dark options (I think that's their name, they keep changing this menu) - I prefer the light option as you get more shadow detail, other prefer more contrasty darker blacks - personal preference. You can see the difference on menu items with refections quite well - reflections barely show on HDMI dark. Try it and see.
AC

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