OK, here is the info.
I downloaded your owner's manual to check out the TV. For best possible picture, you are going to want to buy the component video cables we discussed above. These will have three connections for the video and two for the audio. We'll talk about video first. You'll need to HOOK THESE CABLES UP TO AV 4 on the back of your TV. This is important. Although AV 1 is also a component input, for some reason they made it so it wouldn't accept Hi-Def signals of any kind. Then, on your PS2, enable the progressive scan output mode. Here is what all of this means:
TV pictures are made up of lines across the screen. The picture a normal DVD player shows has 480 lines. There is a catch though - not every line is refreshed on every frame. This is known as an interlaced picture. So, a normal DVD picture is referred to as 480i, meaning 480 lines, interlaced. Enabling progressive scan on your PS2 will allow the PS2 to send a signal that refreshes every line for every frame. This is what progressive means. So, a progressive scan DVD player sends a picture that is 480p, or 480 lines, progressively scanned.
The other option you have is to use the PS2 without enabling progressive scan mode (to send a 480i signal to the TV). If you do this, hook those component cables up to AV1 on the back of your TV. Go through your picture menu to the item called Eye Fidelity and set it to progressive. This switches a line doubler inside the TV on. See which method gives you the best picture. The question will be whether the line doubler in your PS2 is better than the line doubler in your TV. My guess is the one in the TV is better, but what matters most is what you think. Your manual says that for programs with a lot of motion (like a sports game) you may want to switch Eye Fidelity to interlaced.
For an advanced lesson, HDTV can be broadcast in 480p, 720p, or 1080i (they say that 1080p is coming, but I've never seen it or heard of it actually happening). Your screen can display 480i, 480p, or 1080i. I'd recommend doing this - use your PS2 for movies for a while. When you are ready to get a new DVD player or HDTV receiver (which will allow you to watch HDTV) get an all-in-one unit like the new LG LST3510A. It can pass on HDTV or DVD to your TV at multiple resolutions. Remember how I said a progressive scan DVD player can take that 480i DVD and show it to you at 480p? Well, this guy (and a few other units) can display that normal DVD at 720p (useless to your TV) or 1080i (which would look freaking great)! Also, it has a DVI output. This is a type of cable connection that is far superior even to the component cables you are going to be using. Your TV has an input labelled DB15. I think that is just a DVI input, but you should double check that before you buy something on my say so.
What I have described above will give you the best possible image on your screen in terms of color and sharpness of edges. It will not fix the problem with the bars on your screen because of the aspect ratio situation I detailed the other day. If it really bothers you, just tell the TV to expand the picture. True, this isn't exactly the way the film was made, but the TV manufacturers go to a lot of trouble to make the stretching as unnoticeable as the can.
You are also going to want to buy a DVD picture testing disk, like the one made by AVIA. Don't spend more than 20 bucks (American) or so on this, because you aren't installing systems for a living. This will help you adjust the settings in your picture menus to a more correct level. I promise you the way the TV came out of the box is not good. The picture is probably not optimal, and usually they set the brightness and contrast too high, which will reduce the life of your TV (but the bright colors look good to the casual eye, which sells TV's). While we are on this topic, your TV includes something they call APAC. This moves your picture slowly (and I mean like an inch an hour) so that stationary images will not burn into your screen. Burn-in WILL happen to a projection TV if you are not careful. So don't leave the screen on with a stationary image if you can help it. This includes static elements on video game screens and the black bars on the sides or top and bottom of your screen. I couldn't find APAC mentioned anywhere other than the dictionary in the manual, but if it needs to be turned on, DO IT! You won't even notice it, except for the fact that it'll keep your TV from have ghost-looking bars and an ESPN logo on the screen while you are watching movies.
Ok. I think that is everything (except audio - are you using a seperate system or your TV speakers?) that you asked about. I hope I was clear in my explanation. Let me know if you need some clarification. Also, for info, which is sometimes really technical, go to
www.avsforum.com - a website for people into a/v stuff in a scary way. (Hope that doesn't qualify as a plug. If it is, let me know and I'll edit)