On Sky, ALL HD material is broadcast at 1080i regardless of the original format it was filmed in, and all SD material is broadcast at 576i.
The i is very important because it indicates that the material is all in interlaced format. To be shown correctly on a digital display this needs to be deinterlaced to progressive format.
If you set the box to Auto, it outputs 1080i for HD and 576P for SD.
If you set the box to 720P it outputs 720P for both SD and HD
If you set the box to 1080i it outputs 1080i for both SD and HD.
There is no doubt that the scaler in the box is pants but the deinterlacer is far, far worse! Typically this means that the least compromised output (even on 720-768 line displays) is to output 1080i for all material. This means a double scaling but avoids the introduction of deinterlacing artefacts which no display could get rid of.
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Neilÿ