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Question: problem sending 1080p signal from dvd through 705 to tv

the specs on the onkyo 705 says it can do 1080p. I can not find that setting on the 705. I have set the unit to auto. I have a panonsonic dvd dmp bd80 and a panosonic 58v10 plasma. When I set the dvd to send 1080p will go in and out of a blank screen. If I set the dvd to 1080i the tv is fine. If I connect the dvd directly to the tv and set the dvd to 1080p the tv works fine. I am using monster m1000 hdmi cables. Does the onkyo 705 allows a 1080p signal to pass through the hdmi connection or have I miss something in the setup of the 05 or the other units.