How do I fix PS3 LCD TV Lag / Slow Response to Button Action?

I recently purchased a Insignia 46" Advanced Series LCD HDTV with 1080p, 120 Hz and 6.5ms. I have hooked up my PS 3 with a HDMI cable to the TV. I attempted to play Call of Duty: Modern Warfare 2 but was unable to due to the lag on the screen. Looking in the PS 3 manual it states that "The response speed... show more I recently purchased a Insignia 46" Advanced Series LCD HDTV with 1080p, 120 Hz and 6.5ms. I have hooked up my PS 3 with a HDMI cable to the TV. I attempted to play Call of Duty: Modern Warfare 2 but was unable to due to the lag on the screen. Looking in the PS 3 manual it states that "The response speed may be slow on an LCD display or PC display. This is not a malfunction." I attempted to play other games with the same problem. I though I bought a TV with good specs, why am I experiencing the lag or slow response to button operation. Does anyone know or have any ideas on how to fix or improve it? Can I change settings on the PS 3 or TV?
Thanks for the help, all I want is to be able to play MW2 on the new TV!!

P.S. - I tried the trick of switching the PS 3 to "PC" mode with no help.
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