I have an extensive SD DVD library (550+) and am considering upgrading most of my components. I would like to move into an HD future without abandoning an extensive SD library. After a fair bit of research, I now know just enough to be dangerous and am frankly a bit dazed and confused.

I am considering the following components:
Westinghouse 47" LCD (LVM-47W1) 1080p monitor
OPPO 970HD w/480i HDMI output
HTPC/DVR (future build)

There is a (remote) possibility of adding a 1080p projector in the future.

I'm interested in the Lumagen HDP or HDQ. Does an external scaler add value in this sort of configuration or is the money better spent elsewhere?

Constructive criticism is appreciated as well as any alternative suggestions. I apologize in advance if this is not the appropriate place for this question.

I just got an HDP for my Epson TW-700. The difference is well worth it. For me the biggest improvement is the scaling. I'd say that will have quite an impact on going from SD to 1920 x 1080 (mine is only SD to 1280 x 720). You'll also have full control of overscan and be able to correct any greyscale or gamma errors in the display.