J Garcia, the receiver is doing the deinterlacing for the Panasonic DVD player, not the Oppo, the receiver is deinterlacing and upconverting to HDMI. I've let the panny output progressive scan, and the receiver does a better job of deinterlacing.
Yes, the oppo is set to Video 2, which is DVI output only, and yes it's set to output 720p. Maybe I just need to recalibrate the display again with my Avia disc. I'd rather just keep the oppo outputting at 720p so my display won't have to rescale the image back to 720p from 1080i, as it seems too much scaling won't be good for the picture.
What about the noise reduction, and the css settings, what should those be set to? And I'm guessing when I do the calbration with Avia, I should adjust the tv settings, not the DVD players video settings, is this correct?