Like u said, at 40" its pretty difficult to tell between 1080i and 1080p. If I told u otherwise, I would be lying right? 

I did however tried the PSN game FLOW on 1080p and I dunno if its just my imagination but it does look pretty sharp even when compared to what I used to play on 1080i on my 32" R8 Samsung.

Next stop..(if I starve enough and eat more grass) would be to upgrade my amp.. which brings me to this question.

Lets say I just have a 5.1 speaker setup, do u think I will be able to "hear" a difference between Dolby D 5.1 and Dolby TrueHD?

I heard W400 series 32" also is FullHD 1920 x 1080.
And its made in Malaysia?

http://www.av-forums.net/plus/redirect.php...goto=nextoldset

The PS3's default is to convert recognized audio streams to Linear PCM, an uncompressed audio format, for output via HDMI or digital optical audio. This can be advantageous if, for example, you're outputting to an HDTV that has built-in speakers and decodes only Linear PCM. If you're using your own home theater receiver, though, you'll want to use the Bitstream setting: In this mode, the PS3 passes the audio "bitstream"--be it Dolby Digital, Dolby Digital Plus, Dolby TrueHD, DTS, or DTS-HD--through to your receiver via the HDMI or optical connector; from there, the receiver decodes the audio and outputs it to your speakers.

If you go with the default and use HDMI for a source with 7.1-channel audio, you'll need to output to a device that can read Linear PCM at 7.1 channels to get the full benefit. If your disc has DTS-HD 7.1-channel audio, that audio will be output at 5.1 channels instead. If you choose the Linear PCM default but use the digital optical connection, you can have only 2- and 5.1-channel sound. The multi-A/V-out (either component or composite video) supports 2-channel audio only.