We want your HALO 3 screenshots here. Add yours.
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1080i vs 1080p
Assuming you're watching your 32" LCD HDTV, there's not going to be much of a difference. Street wisdom is that you have to be watching at least a 42"-50" display for 1080p to be discernable.
BTW, the native resolution of that TV is 1366x768. I would suggest running your 360 at 720p, unless you've done direct comparisons between 1080i and 720p and found 1080i superior on your TV. Not only should it look better in it's native resolution, but you'll have less overscan (image lost off the edge of the TV), see more frames (60 progressive (full) frames versus 60 interlaced (half) frames), and since almost all 360 games render natively in 720p there will be no conversions for the 360 or the TV to perform, resulting in a signal that is as pure as you can make it all the way from software to display.
My .02