Yes this unit will upconvert DVD to 720P or 1080I via the DVI output only. I tried one for 28 days and returned it. It is not a bad player and the upconversion looked good on my TWX but it was not enough to make me switch. Somewhat grainy and does not pass pluge.
However, the Pioneer DV-59AVI is good enough to replace my Denon 3800 which is now collecting dust as well as my older 47Ai (CUE Bug). I may try the 5900 to see how much better the SACD audio is.
Since my TV does not display DVD at 480P and must upconvert to 540P I was never happy with Hitachi's ability to do this. The Pioneer does a very good job of it and I am sure that the Denon does also.......Steve