We have a Panasonic combo in our bedroom and it works well there with our 27" direct view TV. The truth is that neither the VCR or the DVD player sections are that great for HT. They look fine on a small screen, but you can bet that a lot of corners were cut to make these things as cheap as they are. If your tight on space and not super critical of performance, then go for it.
I have a samsung DVD-V2500. The progressive scan DVD output is very good (using it with a Panasonic LC76u projector). VCR quality is average (i.e. pretty bad). It does the job I need it to very nicely - 80% DVD 10% TV tuner 10% watching original Star Wars on tape.
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