Getting a decent video signal from my PS3 is proving to be quite a challenge. Out of the box, my Japanese console is generating an interlaced NTSC signal of 480 lines on its composite video connector. This is pretty bad. NTSC 480i is the ugliest video standard available. And to make matters worse, it is made available as composite video, the second worst possible connection after RF connectors. In the settings menu, I have been unable to force a PAL (576i) mode.
So, how to proceed? Rumor has it that PS2 video cables should work on the PS3. I managed to find a playstation SCART cable, but the price was a ridiculous 49 euros (US$ 65). This is way too steep for a very simple PS2 cable, for which I'm not 100% sure will work with PS3.
Other alternatives? Well, the proper way to hook up a PS3 to a screen is via HDMI. The PS3 has a really good HDMI port that supports version 1.3. The PS3 lacks a proper video scaler though, so if you want to go HDMI, you will want a native 1080p screen. Additionally, your HDTV screen needs to support HDCP. This means getting decent video signals from your PS3 is a very expensive undertaking. At least my XBOX360 has standard VGA output, available at all sorts of screen resolutions.