Cinema Conversion
Cinema Conversion is a utility of the PS3 that sets the type of conversion needed to display video, film or animation material. Set this to "Automatic" so that the PS3 will automatically distinguish between different types of content and apply the necessary conversion to display it.
Upscale
This setting affects how non-HD content is displayed on your PS3. Set this to "Normal" so that the PS3 will scale content to fit the display without distorting the original size of the image.
BD/DVD Video Output Format
This setting changes the color space that is output from the PS3. The "RGB" setting is best for video games, since they use that color space, while the "Y Pb/Cb Pr/Cr" option is best for DVDs and Blu-rays. Unless you are experiencing color issues, leave this setting on "Automatic" so the PS3 will detect the best setting to use for your current content.
BD 1080p 24Hz
This setting allows the PS3 to scale and output Blu-ray content at 1080p/24, the native resolution and frame rate of film Blu-ray content. This format is not accepted by many TVs, and even TVs that do accept it do not see much of a benefit, so this setting should be left "Off." If your HDTV is optimized for 1080p/24, set it on and see if you like the results.
Video Output Settings
This setting allows you to select the resolutions that your TV supports so the PS3 can output content in that resolution. If you have a 1080p HDTV, select all of the resolutions, as your TV will support all output formats. If you have a 720p HDTV, select everything but 1080p. Sometimes, content on a 720p will look better in 720p rather than 1080i. If that is the case, deselect 1080i.
RGB Full Range
This setting controls the range of RGB color information that is output by the PS3. For most television sets, this should be set to "Limited" to produce the most accurate colors. If your TV has a wider RGB color range, you can set it to "Full," but you may need to calibrate your TV's settings to get the best results.
Y Pb/Cb Pr/Cr Super-White
This setting allows the PS3 to output darker blacks and brighter whites for better contrast ratios on TVs that support it. Since this setting has no effect on your picture if your TV does not support it, it should be left "On" so it's there if you need it.