1080p and 12-bit problems

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.

If you had searched the forum you would find that there is a common misunderstanding about the 12bit option.

There are no commercial sources of 12bit media. It is all 8bit.  So setting the WDTV to 12bit is at least pointless, and at worst possibly causing your other problems which could be the TV (most likely) or the WDTV.

Just leave it at 8bit, you won’t see any difference in the colors rendered.