Although properly-configured Radeon HTPC's are amazing at DVD, their deinterlacing algorithms don't do as much justice to poor film material or video-based material. As of right now, the good commercial deinterlacing algorithms and bad-edit algorithms are still superior -- that's an important point to remember. Also don't forget judder elimination algorithms for 72 Hz refresh rate and other non-60Hz refresh rates, since some PC DVD players don't de-judder very well. Another point to remember is multi-format compatibility.
Now if we're talking about a scaler such as TeraNex that can do intelligent image enhancement and intelligent sharpening .... then all bets are off. Scalers with such mammoth amounts of processing using dozens of CPU's (literally a supercomputer scaler) can add lots more 'perceived detail' that's not possible with even the best PC based DVD player.
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