blurry picture at 1080?

hi,i have a sony RDR-HXD970 DVD recorder and a samsung 40" led tv connected by a hdmi 1.3 cable.if i set the dvd recorder to 1080i or 1080p setting i get a blurry picture and menu etc,(like a outline on pictures and text)but if i set it to 720 it improves but does not give me a sharp picture even on osd or menu.
i have tried different inputs (dvi) and cable,but no joy,can anyone help,thanks