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The Blu-ray player is sending unprocessed 1080p (it would have to process the signal down to 720p). The cable box is sending 720p/1080i (depending on channel) and is doing no processing either. If you are referring to DVD output, my HD DVD player can output 480i over HDMI, which is then...

Actually, as with the original question, it depends. I have a 720p projector that was highly rated for its video processing. If I set my PS3 to 720p to feed it, the PS3 is doing the "downconversion". If I set it to 1080p, the PJ does the conversion. The PJ does a better job than the PS3...