The original LittleBigPlanet's vertical output resolution was 720. I'm curious what the sequel's resolution is. I'm hoping Media Molecule bumped it up to 1080.
Well, according to Gamespot forums, a somewhat recent thread says that it will run up to 720p, but no 1080i or 1080p.
However, in-game, it will by default not take up the whole screen (keeping the aspect ratio) if you are playing on a 1080p monitor/TV. You can scale the video up to fit to the whole screen by hitting start in-game and going through the settings. So, in a sense, it can be 1080p though the quality may be reduced oh so slightly that you probably won't notice it.