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Upscaling is a very geeky debate, is it worth it?
Say, for example, you do own a 1080p panel. This has 1080 lines of pixels. The ONLY way you can display on this screen is either a) using a 1080p source or b) by upscaling another source to 1080 lines.
An upscaling DVD player allows you to perform option a) - it will output a native 1080p source to your panel which can be displayed, unaltered.
But what about option b)? How does your 1080p panel display non-1080p sources?
The answer is that your TV already includes an upscaler. On a good TV, it will include a good one. If you connect a legacy source to your new TV using scart, component etc, then your TV will upscale it for display on the screen.
But which is likely to include the better upscaler? A £70 DVD player of a £1500 Plasma TV. In many cases it's the latter, but it does vary.
The argument goes further if you have a 720p "HD ready" screen. Most of these actually have 768 lines. The upscaling DVD player will output 720p to it, having upscaled from the 576 lines of the DVD. Then, the TV receives the signal and UPSCALES IT AGAIN...to 768 lines. There's a loss in picture quality during both upscaling actions.
Personally, I think upscaling DVD players are a total waste of time, designed to confuse consumers who don't really understand. If you already have a good quality progressive DVD player connected through component cables, you're likely to see no difference at all.
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