Video Scaling Processor/HD-DVD or BluRay

I am sorry if this is a stupid question. I was wondering if you needed both a processor (ex. Anthem D2) that has video scaling capabilities AND a HD-DVD or BluRay that decodes hi rez plus lossless true Dolby Digital for the best possible picture and sound? Or is it just overkill, you just need to have one or the other? Thanks for any help in advance.

The video processor may help the high-def formats to look better. I don't know that with my DVDO vp50 that it is really a factor. But a video processor will upgrade all the lower signals up. My satellite at 480 does not make it all the way to 1080, but it definately looks better than it did without the processing. Perhaps a better video processor will do more. With that being said, the D2 has a video processor built in it. With a D2 you should be in good shape and you can then get true 1080p with the HD-DVD or Blue-Ray and upconversion on everything else.
Slitty , forgive me for hijacking your thread .

I too am interested in this aspect of HT . I am setting up a new system for HT use only , all low end bigbox stuff .

My old system used the DVD player for all video work and I had it direct to the TV . I used a processor and amp for the audio portion taking the signal via toslink from the DVD player to my pre/pro . I ran my cable box the same way .

Can I do the same type of connection with the new style of video ie. Bluray and HD-DVD .
In other words can I depend on the DVD player (HD , Bluray) to continue handling all of the video processing and use an A/VR for the audio portion of the equation ? I have a HD cable box and TV .

I think that this is where Slitty is trying to go here .

Thank you .

I don't feel like you were hijacking my thread. You are somewhat correct. I just wanted to know if someone could give me some helpful advice. I do want to eventually get a D2 (new or used), but I just cannot spend 5-7 g's right now. So I wanted to know if my 1080p DLP combined with an HD DVD or BluRay with TrueDolby would give me the best picture available right now. Add an A5 to my Denon pre-outs; shortly, upgrade Denon to maybe AVM 30 or 40 (to improve audio), then eventually to the D2. I know the D2 can upscale my DVR, Gaming console, everything else up to 1080p and the best audio; just wondered if I could get at least one true 1080p from the true dolby (disc players) until I am able to get the big daddy pros.

Thanks, Slitty
Upscaling is just a simple process. I believe that a dedicated video scaler with its cadence detection and probably, noise reduction feature, will do a much better job than just upscaling the video signal.