I had similiar problems with my ibook on my big screen at home. I ultimately just got a cheap PC, slapped a nice video card in it, and a few extra hard drives and voila, I can now play any type of media through my computer into my TV and stereo. BTW it runs linux, which was a free download :)

What dappy mentioned makes most sense to me. You probably need to use something specific with apples specifcations. I am sure the mac mini will do exactly what you want it to, as long as you are using specific equipment that its designed to work with.

I am willing to bet if that is the issue if you hold out a while longer there will be a firmware update to fix this. My only other question to you is, will it work with different TVs?

There are actually a few more formats than just DVI-I and DVI-D, there are single and dual link DVI connectors, DIV-A, DVI P&D, each have different pin out configs.

http://www.datapro.net/techinfo/dvi_info.html#Page02

http://www.datapro.net/techinfo/dvi_info.html#Page05

I assume that mixing the formats from input to output you might run into some troubles. I will search the mac mini service manual and find out exactly what outputs it offers.

Also, you never said anything about what happened with 1080i vs 1080p. I realize it probably didnt work but did anything at all happen etc?

Also you might want to check out hometheatermac.com

The problem at this point is that I'm not 100% sure that I've been able to change ANY of the settings on the mini. The reason for this is that when I hook up DVI/HDMI cable from the mini to the HDTV, I can't see ANYTHING. So, I have resulted to hooking up my PBG4 to the HDTV and then using displayconfigX to set custom settings and then I copy the following folder:

/System/Library/Displays/Overrides

into an email and send it to the mini and then I overwrite the same folder on the mini. Then I restart the mini and hook it to the HDTV again. It still doesn't work, and I really don't know if I've changed the correct information on the mini to make it work? I HAVE tried the 1080i v 1080p IN AND ONLY IF, what I described is correct

Good News!
 

Somehow the HDTV starting working. I upgraded to OSX 10.3.9. In addition I hooked up my PBG4 to the mini through VNC and was able to get the mini to work with the HDTV! I'm not sure if it was the OS update or the VNC hook up that allowed me to reinstall the displayconfigX settings that worked, but it IS WORKING! I am releaved and happy. Thanks to everyone that helped!

ONE MORE QUESTION:

On the TV the bottom of the computer display is below the bottom of my TV display, is there a way to adjust it so that I can see the bottom of the computer display?

Doesn't that have to do with the "overscan" setting? http://voodoofx.all.de/displayconfigx/#Overscan