See: http://www.hometheatersound.com/equipment/onkyo_dvsp502.htm for Onkyo DV-SP502 review.
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I have an Oppo 970HD connected by component to a Panasonic RP HDTV with excellent results. I had the system calibrated by an ISF technician and I think the results are excellent, and only for $150. I am waiting for the formats to stabilize and for my TV to die before moving up. Both events are likely to happen after hell freezes over!
Thanks for all the responses! I think I am going to go with the Oppo though; it has DVD-A and SACD support, thought I am still considering the Onkyo. Price wise they are almost exactly the same shipped to my door, but I am slightly hesitant to go with a brand I have never heard of vs Onkyo. One more question, how important are the DACs? I noticed (mostly with the video) that they have different ratings as far as bit and MHz.