HD-DVD media was originally to be released by Christmas. However they have been pushed back into early '06. Blu-ray discs are to be released in early '06 as well. IIRC, Japan already has HD burners.....

DVDs are interlaced. It is the display that can "display" the DVD as either interlaced or a progressive image.

I am a big believer in the upgrade qualities a good upscaling player will give you. Much of it depends on the original source and/or transfer of the DVD. High quality transfers like Star Wars or the Matrix films look close to HD quality on some upscaling players. Chances are that the new HD players will not be as good as current players at upscaling STANDARD DVDs. However down the road that issue might be addressed. Just my $.02