I understand the dilemma that you're facing, but I recommend that you do what I'm doing, and that is wait until Christmas. I've read from several sources that there is going to be a price war between HD and Blu-Ray, and that prices are going to drop a lot. I never heard that playing DVDs through your XBOX is bad for it. If it was, they wouldn't have built it to play them. Bottom line, why buy an up converting one now, when in three months you may be able to buy the real thing, that will also up convert your existing DVDs.
I just bought my first 42 inch plasma t.v. (TH-42px75u)..And I was debating on either getting a blue-ray or HD player.. or saving the money and getting a DVD up converter player..HD and Blue-ray players are so expensive and I'd have to start buying the more expensive disk's.. And not to mention that titles are limited right now on both ends..And not every title is on both formats.. With DVD up conversion It's my understanding that I'll get much better picture (up to 1080P) without spending hundreds on a hd/blue-ray player..I've never seen an up converted picture before..So I was wondering in everyone else's opinion is it worth saving the money and just buying a decent up conversion player?.. I've been using my xbox 360 to play dvd's on my new tv thus far and I was impressed right from the get go..However I hear the xbox360 does not convert dvd's and it's apparently unhealthy for the system to play games and movies together..:::shrugs:: that's just what I've heard...
Ok so yea.. Sorry for such a long post on a simple question..Please give me you're best input guys..