Sony KP-51HW40 - not capable of displaying native... (by 2 users)

Your understanding is incorrect.  Sony KP-51HW40 manual, page 39:

"When a 720p format signal is received, it is converted into a 480p
format signal"

And where did you pull 540p from????

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The HD signal from TWC's Scientific Atlanta cable boxes
(2000HD or 3100HD) are 1080i over either YPrPb component
(both boxes) or RGBHV (option for 2000HD only).  The SD and
NTSC signals are 480 via S-Video, Composite, or Coax. If the
programming was originally 720p it will be upconverted at
TWC's headend into 1080i and sent down to you that way.

You must feed that model 1080i; not 720p. Its specs out like
most HD displays; it has no internal tuner and only displays
HD at 1080i. That is done to keep costs down; few can do
720p too. This not a problem as virtually all STBs will
convert any 720p (like ABC uses) to 1080i.  There may be
slight differences seen by some users but generally it is
considered not something to worry about.

Bruce

I think it means that the display should be capable of receiving via a 480i,
480p, 720p and 1080i signal and it is up to the manufacturer to decide to
change it to 1080i or 720p......  both are considered to be HD.   There is
no display on the market that displays all formats natively....  either 720p
or 1080i    This is mostly due to cost and technology..... to expensive to
make a set that displays all formats and the technology does not allow the
mapping of pixel sizes appropriately.... this may change with DLP and LCOS
sets, etc.   The funny thing is that manufacturers are putting HD ready or
HDTV on the monitors even though everything is converted to 480p or 1080i.

For a monitor to be called HD, it has to be able to handle all 18 of the
standards.  That said, most all of the current crop of CRT based (direct
view and RPTV) TV's do NOT support 720P natively.  Fixed pixel devices (DLP,
LCD etc.) typically support 720P natively as they are progressive devices by
nature.  I believe Phillips used to have a RPTV that was 720Pnatively.

I know that sets with DRC chip do this.