So I actually ditched the Hauppauge and got the Intensity. I'm having trouble getting it to accept 720p through my ps3 (it's a very weird set up). I was able to get 1080i (which means I can cap some native psn games... and virtua tennis). So I did a cap of virtua tennis.
This one is downscaled from 1920x1080 to 1280x720 (1920 x 1080 too big for imageshack):
VT3 1280x720
So as you can see, it looks AWESOME. It looks flawless at 1920x1080.
Now if I can just get the damn thing to accept 720p...