Whenever I set my WD TVLP to 1080p, 12-bit, things seem okay at first. My tv, an LG LCD, recognizes it as a 1080p signal. But when I was playing a movie, which was a standard DVD ISO, I lose the signal for a half a minute or so and then it comes back as 720p. I have noticed this several times. Things are fine if I leave it as 720p, 8-bit.
For DVDs and internet I am perfectly fine with 720p, but at some point I may have 1080p sources. Is there a problem with 1080p? Is there a problem with 12-bit? Obviously this over the hdmi cable. This is using the latest firmware, but I believe I have noticed this with other firmware.