Great information Saturn, sounds like your the HTPC guru
Since Nick is looking at the Z3, as am I to replace my awesome Z2, I thought I would add some additional information. I'm not sure what video scaler Sanyo uses for the Z3, it might be Faroudja based, not sure, but many of the threads I've read on AVS from current owners speak very highly of its ability. Most of them set their DVD players to interlaced mode and let the Z3 take over.
Here is a portion of Projector Central's review on the Z3, sounds pretty impressive..
"Owners of the Z3 will never want to bother with an external video processor like the DVDO iScan HD since the onboard electronics are already fully adequate to the task. DVDs are scaled as cleanly as we've ever seen on any product in this class, and those with particularly good transfers look almost high def."
So it sounds like I will forget the idea of getting an upconverting DVD player.
