I know this one for sure.

TV can NOT display your 1080p or 1080i video content. A minimal incarnation of 720p is as good as it can do. However, doing the same thing (with HD Camcorder content), I have never found a good way to render content shot at 1080i and 1080p in 720p and not have a noticable stutter when it shows on the

TV (especially when panning the camera). What works well is outputting to the default

TV setting which yields a 960 x 540 render (half the "full HD" height and width), resulting in a picture that is better than DVD but much inferior to the original source.
Don't be fooled by the screen resolution setting options you can choose when initially setting up the

TV. The 1080 options are for the UI- and maybe for still photos (I'm not sure), but it is definitely not pumping 1080i or 1080p video content to your HDTV at 1080i or 1080p (the hardware either can't do it, or Apple for some reason has it set up so that it can't).
And just in case you are wondering, it can't downconvert it to 720p on the fly either... you have to render it in a format that the

TV can handle. Your 1080p or 1080i renders will go into iTunes and play there just fine. But they won't flow to the

TV. As an owner of an

TV and a 1080 camcorder, this is the biggest issue with it IMO (but I love it otherwise, and it will be great if it ever gets a hardware upgrade to resolve this one shortcoming).
So you can shoot 1080i or 1080p on the camcorder, edit and process the video in iMovie on the Mac, render it out as a 1080 HD video, import that into iTunes and be just one step away from your 1080-capable HDTV. But that step is currently the weak link in that it can't bridge the gap between 1080i or 1080p video in iTunes and the HDTV.
Many of us current owners (with 1080 camcorders) are in the same boat as you, hoping for a next-gen

TV with 1080p hardware. We've been waiting a long time, and no one knows if it will arrive tomorrow, next year or never. Just keep the final version of your iMovie files so that you can re-render everything for a 1080

TV should it ever arrive.