Get a ps3
There are much better upscaling DVD players than the PS3 for the money you spend. If all you want is a DVD player get an Oppo.
I disagree . Many on the AV forums think the PS3 with latest firmware 2.50 has more impressive Chroma upsampling than even the Oppo players...
There are a few technical reviews from the 2.1 firmware days that claim the SD upscailing on the ps3 fails some basic tests (deinterlace and others), but in the real world these specific tests may not matter. Additionally, the firmware keeps getting better and performance is improving...
The original post indicated he was interested in a game system that would also double as a DVD player. That leaves the Oppo out and he has a perfectly fine Denon. The PS3 is a better performer than the 360 for sure...
My $0.02 is that the PS3 is one badass blueray player and a perfectly acceptable SD player...