tedstir :
Thanks ALL that was fast and informative!
There is a way to have the TV display a TRUE 120HZ, rather than use frame interpolation.
Your HDTV only shows up as 60Hz in Windows, but you are able to add an option to output a 120Hz signal. Normally this is considered Overclocking your monitor but in this case the TV is already displaying 120Hz, but from a 60Hz signal.
If you just force a 120Hz signal (Look up Monitor overclocking guides, same way) and disable the Motion smoothing in your TV's setup menu, then your HDTV will then be displaying a 1080p signal at a REAL 120Hz.