Question about my TV

OK so I have an older 32 inch LCD Vizio TV that has an amazing picture IMO. It has a native resolution of 1366 x 768, but on my ps3 I can set it to run in 1080p, my xbox can run in 1080i, and regular TV can run in 1080p. I never thought much of the native resolution since most current gen games run in 720p, but with next gen promising 1080p, my question is, will my TV show games in full 1080p, or will it only be in 720p, upscaled to 1080p? If it is 720p upscaled to 1080p, with my TV only being a 32 inch, will I even be able to tell the difference? I want to be able to take full advantage of next gen, and somethings telling me, my TV wont quite cut it for next gen gaming.

If you want to take advantage of next-gen, you will need a 1080P native TV. If you want to take advantage of 1080P native, you should try to get at least a 42" set to really see the clear & obvious difference between 720p and 1080P.

Your TV only runs at 1366x768, its not running at 1080p as you think, its just down-scaling the signal given to it.