1) Yes, you can set your player to output at 720.
2) I just got a Panny BD-P1400 Blue Ray player and it resolved my TV's inability to properly convert 24p to 60p (3:2 pulldown). For instance the opening scene of Revenge of the Sith used to stutter during the pan down to the ship. The internal processing of this player can do this properly.
I would personally get either a Blue Ray or HD DVD player (your choice) instead of a regular DVD player for these reasons:
1) You'll be able to play Hi Def DVDs
2) Internal Vid processors
3) Internal processing of DD True HD and DTS HD will allow you to pass it to your receiver via PCM. This is great if you have an HDMI receiver that doesn't have these decoders built in (Like me)
Last edited by vassillios; 12/14/07 04:00 PM.