I have my PS3 (and my Directv DVR) connected to the 990 with Blue Jeans 5 foot Series F hdmi to dvi cables. I had the 990 connected to the projector with a 30 ft Series 1 hdmi to hdmi cable with an adapter at the 990 until I bent the cable too far and ruined the end ($122 mistake!). It's now connected with a Dayton cable from Parts Express. I haven't had any issues with either of these combinations passing 1080p.

I'm not sure what "video output test" you're doing. If that's a PS3 funtion, I haven't found it on mine. Have you tried playing a Blu-Ray disk and see if you get 1080p?

Good luck.

Rick