Yes! Based on what you are wanting to do this sounds like a good package. The Magnavox has an hdmi connection so I would suggest the Oppo dv-981hd. It comes with a good hdmi cable and down mixes to 2channel very nicely. I did the exact same thing that you are wanting to do. I got this Oppo and a 37" panasonic plasma to add to my 2channel system and it has been great.
is it worth it?
i have a 2 channel all linn activ system with vinyl as my main, preference. currently dont have a cdp as i recently sold it to help fund upgrade of amps. been thinking that with the system i have, why not take advantage of it and use it for 2 channel video. i have NO desire for 5.1 at all. in my room right now there isnt even a tv. i want to get my feet wet, but by no means want to spend crazy...i saw a magnavox 32"lcd at homedepot, dont know model#, but its got 1368x 7 hundred and somethin..not sure...what if i got this and one of the oppo players...again, no goal for blue ray, hddvd, just plain old dvd movies and more than likely concerts. pls see my system and let me know if im wasting my time or if ive found a great way to get into video for under 1k for tv and player. thanks in advance everyone