I just got a new PS3 from Sony (cause the old one was shot). The picture almost seems like ''fish-eye'' view. The game play and words during the game are all centered in the middle when they should be around the border of the screen. I have reset all the settings, formatted the HDD, called Sony twice. No one has an answer for me. I use the component cables and the PS3 says it is 1080i, but not sure it really is being output into the correct resolution.

In the system settings check to make sure you are "set-up" to use the correct output, Composite, HDMI, also, try using the analog, output that normally comes with PS3 (analog adapter for PS2 will work also), but you have to change the output to analog to try, and you will have to change the settings back to composite or HDMI for 1080i while still using the analog, if you try it, then restart the PS3 and seee if there are any changes, try with as many different outputs, as possible to eliminate that before sending back to SONY for repair or replacement.
Thanks for the nice rating if this helps or solves your issue, or points you in the right direction, Fixya is appreciated. Thanks for the question