HD TV resolution on apple tv

I just got my apple tv and set it up. Everything seems to be working fine...and as expected. the only question I have is in setting the tv resolution. The only option the set up menu gave me was 480p. My tv is a Samsung HD 1080i receiver. I am connected via HDMI/DVI cable from apple tv into tv. Shouldn't I have had more tv resolution options in the set-up menu?

handshaking on the HDMI is probably telling the Apple TV that 480p is the best resolution available. it is not uncommon for some HDTVs that are 1080i capable to only support 480p or 1080i (requiring that 720p be upsampled and output as 1080i on set top boxes). i would not worry about it, though, for the time being. until you buy 720p HD content, you are not experiencing any signal / quality loss.
480p out of the A TV gets converted to 1080i inside of the Samsung TV, then gets displayed 1080p on the actual screen.
if you were able to output 720p, your A TV would just be converting 480p material to 720p on its outputs, then be converted to 1080i inside the TV and then 1080p on the display.
so you can see that by upping the output display resolution (if you were able to), you are not actually increasing the quality, just causing the video conversion to happen earlier in the signal chain, which may or may not be a good thing, depending on the conversion process in each step.
once HD material does become available for download / purchase, you might either want to a) wait for 1080 HD material to be an option... might be waiting a long time and might have to upgrade the A TV... or b) buy a new TV.

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