Unless you have a digital televsion, you can only use a DVD player in interlace mode - so the de-interlacer is not used in the DVD player and you might as well get a bargain under $100 player for that. Your small screen (especially with widescreen titles) could never show any minor picture quality differences anyway. Worry about DVD player quality when you upgrade to a much larger digital display!
I would disagree about not seeing differences with players on a 27" screen. When I brought my CP72 home my wife and I saw a big difference from the low end panasonic we had before. Now that the CP72 is dead, using the old player is a letdown. PQ just isn't there, too soft, not bright. Maybe the new low end players are better.
I was looking at low end front PJs to buy, thinking I had the DVD player nailed. Oh well.
So, if I bought the 27inch Wega with dual component inputs, and hook it up to a good medium priced dvd player, I won't see a difference between a low price no-name dvd player and a good medium priced dvd player like the panasonic rp92 or denon 1600?
The Sony 34XBR910 adds a higher resolution finer-pitch picture tube for better HDTV, you don't need to go that high for just progressive DVD. For $1000 you might be able to get a 30" 16:9 set or a 32" 4:3 set from Toshiba or Samsung. I would recommend spending a little more around $1500-1800 for the higher quality 34" Sony 34HS510 or Toshiba 34HF83 models though.
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