Hi there
Upscaling is done automatically. I found the following from: http://www.avforums.com/review/sony-x8505-kd-55-49-65-x8505b-ultra-hd-led-lcd-4k-3d-tv-review.10556
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With the dearth of native Ultra HD content out there, it is, of course, vital that a 4K TV is able to scale sub 2160p resolutions convincingly, and the X8505 is superb in this regard. Obviously the better the signal you give it, the more impressive it will look but even a well mastered DVD could appear more than watchable. Ramping up to streamed 720p and 1080p material and we found the Reality Creation tools quite useful, although it’s not a scaling control, as such, but the tiny local adjustments in pixel brightness did lend images an extra sense of depth and resolution. A good Blu-ray disc looked simply superb via the X8505, even in motion, although with stiller shots it looked even better and, dare we say it, more than the 1080p native resolution of the disc. More routine tasks such as standard definition film cadence detection for both 2:2 (PAL) and 2:3 (NTSC) were passed and for 24p content (most Blu-rays) a MotionFlow setting of True Cinema produces a 4:4 frame pull-down without interpolation. Video deinterlacing was also excellent, which we could observe in our various ‘jaggies’ tests and we could see that confirmed when watching sports via broadcast 1080i50 material where lines remained intact under panning.
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In regards to what settings to be used - this all comes down to personal preferences and room design. Eg, your room might be brigther or darker than someone elses, or you might like a more brighter or vivid picture than someone else. My advice is to write down all the current settings on a spreadsheet and slowly adjust them over time, taking note of the settings you have adjusted.
For gaming, select the Game mode from the Scene menu - gives less lag.
Cheers
