all xbox 360 games are rendered internally at least 720p and upconverted to 1080i
for some reason the M$ first party games only say 720p but all display and look great at 1080i (kameo, pdz, pgr3)
set your xbox 360 to 1080i and play pgr3 at 1080i
The folks here at Xbox® have taken a bold step by declaring that all games that appear on the Xbox 360™ video game system will support high-definition resolutions up to 720 progressive scan and 1080 interlace. It's important to note the difference between this policy and that of the original Xbox® console. With games on the original Xbox, developers had the option to support HD graphics, but Xbox 360 demands that all games feature high-definition options. To clear up some confusion, here are a few key points to bear in mind regarding high-definition support on Xbox 360.
* You do not need a TV that supports high definition to use the Xbox 360 system. Like all consoles before it, Xbox 360 works perfectly on standard-definition TVs (the resolution for standard def is 480 interlace).
* The high-definition support for Xbox 360 is dynamic, so even if a game is designed with 720p in mind, but your TV only supports 480p or 1080i, Xbox 360 runs the game in the best resolution your TV offers (up to 720p and 1080i).
* If you do plan on running games in high definition with your HDTV, you'll need the Xbox 360 Component HD AV Cable, which comes standard with the Xbox 360 system (not the Xbox 360 Core System) and is sold separately as well.
* If you're using the Xbox 360 VGA HD AV Cable to connect your Xbox 360 console to a computer monitor or TV monitor with a VGA connection, you'll have the opportunity to select from a variety of resolutions. They are:
o 640 x 480
o 848 x 480
o 1024 x 768
o 1280 x 720 (equivalent to 720p)
o 1280 x 768
o 1280 x 1024
o 1360 x 768
* Whether using the Xbox 360 Component HD AV Cable or the Xbox 360 VGA HD AV Cable, you'll find the resolution settings in the System menu on the Xbox 360 Dashboard. Select Console Settings in the System menu, and then select Display to find all your resolution options.
Xbox 360 offers unprecedented support for high-definition gaming, yet it remains flexible as well. Whether using a standard definition TV (480i), an HDTV with only one progressive scan option, or an HDTV with every available option (up to 720p and 1080i), or even a computer monitor, Xbox 360 will employ the best resolution your TV or monitor can display.