Progressive scan is intended to appear more "film-like" and to that end it softens the picture somehwat in an attempt to reduce the appearance of the scan lines. Some regard this as a "better" picture. The size of your screen magnifies the scan line issue. You won't have the crystal clear HD picture you see on your HD broadcasts because the player itself isn't HD. However, although I'm not familiar with your Marantz DVD player, you should have the ability to select varying degrees of sharpness/softness generated by the player. I have this feature on my five year old non-progressive scan Panasonic DVD player. It sounds like you have things connected properly.
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