It didn't work.
It stretched the image vertically and cut off about 30% of the picture. This could also be a fault of the tv - but I'm still not convinced this is really "fixed" I can tell when my tv is displaying at 1080i, and when I loaded the games, they were still 480p, only completely cropped.
Seriously. If you tv can't do 720p, at least TRY a ps3 on your set and see if it works.
I'll be here, waiting for sony to catch up.....I paid $600 for a machine thats had 10 hours on it since launch....awesome!
Well I owe you and everyone else an apology as I came in here acting as if I know it all and I apparently do not

Seems my input was set at 480p/720p/1080i. While my TV only outputs 1080i/540p, my TV does recognize 720p as an input and up converts it to 1080i. I knew all that, but I had tried removing 720p from my option and validating that it did convert a 720p to 1080i within the PS3 itself and thought it did. Apparently when I tried this I had used a 1080i game thinking it was a 720p game which doesn't tell me anything

So basically, after testing it again I can confirm what you describe here. If I set my inputs as 480p/1080i and a game outputs 720p, it will NOT up convert it to 1080i in the PS3, but rather down convert it to 480p. If I add 720p to my inputs in the config, then my "TV" is the one doing the upconvert to 1080i, not the PS3. I thought this is what the fix was supposed to fix, but like you, I'm not seeing those results.
Apologize for the confusion and hope the original poster took my original advice
Please read up on it (from official sites) before writing it off based on the feedback from 1 person