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The problem is nothing to do with the analogue part - I have had it sending 720p, 1080i and 1080p fine through analogue. Also, games are absolutely perfect - both in quality and smoothness of motion. What is happening is that the PS3 appears to be doing a really poor frame rate conversion (3:2 pulldown) on the BD discs, making it judder like a madman.
Looking at the millions of hits at Google about it, it seems that the only solution is a 24 fps TV. It's annoying that my plasma supports 24 fps (I use it on NTSC DVDs), but the PS3 will only output 24 fps via HDMI, and at 1080p.
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