Which of the two formats, 1080i or 720p is better. I know that 1080i provides better resolution, however it is interlaced. Does interlaced even matter at such high resolutions?
HDTV purists will tell you 720p is superior to 1080i.
The argument is getting pretty academic at this point as there are virtually 0 sets (outside of a very few very expensive DLP based sets) capable of displaying 720p natively, comparatively few HD tuners capable of outputting it natively, and only one broadcaster (ABC) using 720p as it's HD broadcast format.
Panasonic's first HD-ready 56" widescreen set would do 720p natively but has been discontinued. These cost about $4000 when introduced, but if you can find a new one still in stock it should be heavily discounted.
Most HD boxes convert 720p sources to 1080i. My tosh box does this for my one ota station which is an ABC affilliate, and the picture quality is indistinguishable from native 1080i broadcast by HBOHD. The Dish 6000 STB will output 720p natively, don't know about Samsungs OTA-only box.
The vast majority of sets are capable of accepting 720p from a box that will output it, but again convert it to 1080i or sometimes 480p, depending on the mfr.
In addition to what Steve said, It is felt that 720p is better for fast action programs such as sports due to less motion artifacts, while film based programming is better with 1080i...With Consumer displays currently available, I doubt seriouly if many people could see a visable difference