I would get a HD-DVD player, the prices have dropped considerably in the past several months. It's still cheaper to buy a HD-DVD player and a PS3 than to buy a combo player.
I prefer HD-DVD over Blu-Ray, I have both, it's just my preference.
As far as the new surround formats go, Imo there is a significant difference for the better in the new formats. They are clean and crisp, almost like the difference between SD and HD.

A computer once beat me at chess, but it was no match for me at kick boxing.