the video card will scale the hd image nicely. note that computer monitors are 16:10 while movies are typically 16:9, so even a movie that fills a 16:9 frame will still have some letterboxing.
I have a acer al2216W monitor with hdcp support, a geforece 8800gts 512mb vga, and the logitech z5500 speakers. Now my question is if i were to buy the LG HD DVD/Blue Ray player, would my monitor and all my components support close to a 1080p picture. My resolution is also 1680x1050 @ 60hz.