1080i upscalling or monitor support?

So I've been looking into buying a PS3, but I don't think that my HDTV will work with it. My TV supports 1080i instead of 720p (it's an old CRT) so many of the best PS3 games will scale down to 480p instead of up to 1080i. My question is does anyone know if sony has any plans to include some sort of upscalling for PS3 games in the 2.0 update?

Also, I have considered buying a monitor with an HDMI input, does anyone know if the PS3 is able to run through monitors through HDMI or DVI?

Thanks for the help!

in order to hook it up to your monitor, you will need an dvi to hdmi cable, they are around $30cdn, as for the TV business...i dont know