I think that I may have a fix for you. I was also having this same problem, I'm using a build from April 13th. I was able to backup a dvd to the harddrive and play it in 1080i from there, just not from the DVD-ROM drive. I came across a post somewhere else where it talked about adjusting the Cache settings. They are under General Settings. I edited them to the following:
LAN:
vid - 1024 kb
aud - 512 kb
dvd - 1024 kb
For HDD:
vid - 1024kb
aud - 512kb
dvd - 1024kb
UDF:
vid - 1024kb
aud - 512kb
dvd - 1024kb
After you adjust the cache settings, exit from XBMC and reboot your XBOX. I tried my DVD with 1080i after this, and sure enough it worked. I was even able to setup a SMB share on my DVD-ROM drive on my PC and share the DVD from there, while playing it in 1080i. I would just make sure to write down your cache settings before you change them, just in case. However, I haven't had any problems after the change.