I have a version 2 DVDO iScan. It works very well and definitely does a better job than the circuitry built into my Toshiba TV. It's probably not a replacement for a progressive scanning DVD player, though.
I inquired whether I can use it with my Mitsubishi projection TV (VS55705) which has component inputs, but I heard that you need a digital TV to use the iScan. If you prefer component in/out, check out the iScal Pro (instead of iScan Plus).