VP30 will passthrough 1080p. It will not do any processing on it. VP30 also will not handle lossless audio or multi-ch PCM. I have a VP30 in my bedroom. I figured a nice way to get most out of it.
get a Toshiba HD-A3 HD-DVD player. I bought mine for $20 on craiglist. This player is a terrific DVD player as it 480i over HDMI.
Connect A3(set to 480i), Apply Tv, Comcast cable into VP30
Connect PS3 and VP30 HDMI out to Denon, set denon to passthrough.
use Toshiba A3 for DVDs(excellent picture via VP30)
aspect ratio management on VP30 is super for SD ch with letterboxed movies, it will upscale better than others in your system.
VP30 wont upscale 1080i properly but still decent results.