Log and transfer will ingest P2 footage natively. If it was shot 720p, it will ingest as 720p. Same goes for 1080i. You can not log and transfer P2 footage from 720 to 1080. If you didn't have to render your sequence when you added the clips to the timeline, then all is good. Export a self contained or reference movie and bring that into Compressor to create a MPEG 2 or h.264 for Blu Ray.
Eisen Video Productions
Chicago Creative Pro Users Group