I don't have the Kuro, but have a 5070 and rule of thumb has always been to set the output devise to the closest resolution of your panel but not higher. Example, panel res is 768P set the 722 to 720P and let the panel up convert to native as opposed to setting 722 to 1080i and panel has to resolve to P and 768. The less converting, the better. In your case I would set 722 to 720P and let the tv up convert to 1080P. Having said that, try a comparison by switching the 722 back and forth from 720P and 1080i to see if you can see any difference.
I don't have that combo either but for a 1080p set I'd set the 722 to 1080i since there are far more channels in 1080i than 720p. This way the 722 outputs the native resolution on most channels and the TV just has to de-interlace to 1080p. If you set the 722 to 720p then the 722 has to de-interlace and scale to get to 720p on most channels and then the TV scales back to 1080....too many steps in the process if you ask me.
But in the end, try both and see what works best for YOU!
Native resolution passthrough would help if we ever see it!
So, Nick1Toast what about your picture settings on the tv itself, such as color, contrast, etc.?
Here are mine:
Tint: Red 5
Film Mode: Off
Text Optimization: On
DRE Picture: Off
Black Level: Off
Enhancer mode: 2
Color Temp: Low
Field NR: Low
Sometimes I feel like the picture is a little darker than normal on some scenes, but overall OK. I'm trying to figure out a settings that gives the best standard definition using the vip722 w/ hdmi.
Note that you will have to research how to work the service menus. The values D-Nice posted are offsets so if your number was 200 and the offset was +3 your resulting value would be 203. My settings are pretty close to his, but my brightness is up a bit and my contrast is higher, I like a bright picture.
I didn't want to access the service menu myself either, so I used D-Nice settings from AVS Forum, just the consumer accessible ones. They are posted here.
They made a big difference compared to what came from the factory. I'm sure I could tweak more out of it by using the service menu settings - but I'm quite content with what I have.
There is a wealth of information on the Kuro in that forum.