It sure sounds like it from this comparison of 1080p out of the Sammy against the Pioneer by Bill Hunt and the Pioneer guys: http://www.thedigitalbits.com/#mytwocents A bit of back-story, the Sammy is decoding all HD internally into 1080i even from "progressive" sources like 1080p24 mastered Blu-ray discs. This probably makes it easier for the Sammy to deliver a constant 1080i60 stream from mixed sources...like discs that contain film content, video, and 480 film/video originated material. For 1080i output this would not result in any drop in quality (versus decoding into progressive then interlacing). The danger is when it goes to provide a "progressive scan" output from this interlaced signal... how is it generating the 1080P? The same rules for producing 480p from 480i apply to making 1080p from 1080i. Exactly the same. If the Sammy deinterlaced properly using inverse telecine to convert the 1080i60 into 1080p24/48/60 there would be no problem. However, it seems the Sammy may be "bobbing" to deinterlace which means it just doubles each line in the interlaced signal to fill-in-the-gaps. This basically cuts your effective vertical resolution in 1/2 (perceived resolution drops to about 540P vertically). I had hoped that the Samsung was producing real 1080p with 3-2 pulldown reversal for proper frame reconstruction. Seems it might be whimping out after all and just "bobbing" to fake 1080p just to get the "1080p" logo on the box.