Originally Posted by Lee
I had a HD ready 29" TV on which I used to run games in dual screen, but I remember that the real resolution wasn't 1280x720 even if the box said so. It was a little less and I could notice a little cropping of the image while watching videos.
No idea if it is the problem for you and PS2, but it might be a lead for investigation.
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Monitors typically communicate their native resolution back to the video card, but TVs usually have converters in them that allow them to accept many different resolutions and map them to the screen's actual capabilities. Some of these converters don't give a true signal back to the card about the monitor's native resolution, but if you know that it works at 1280x720, you can just set the resolution manually and it should work. Simply try it through the useroptions.ini file if it's not a resolution that's available inside the game's graphics settings page.