it'll work fine with component cables. and yes, ps3 is upgradable to profile 2.0. right now it's 1.1 so upcoming firmware, it'll update ps3 to 2.0 when movies that needs it is released.
easy to notice the difference between 1080p (progressive) and 1080i (interlaced) is to bring up a fast moving scene i.e. car run by, you should see wave-alike lines at the end of moving car in interlaced mode. you won't see that in progressive mode. i'm sure you know that already.