Just a quick update, I ended up with the JVC DS10 and couldn't be happier with the picture quality. If it's on the DVD, it's on the screen, it's that simple. I watched Spiderman 3 the other day and the graphics were just fantastic in every way. The movie sucked but I enjoyed the eye candy nonetheless. I think that movie may have been made to sell TV's... I don't know... but it would work.
I've watched several types of movies and regardless of the quality, it still looks good... I was worried since it was so big it'd enlarge the problems of the original... but everything just looks good.. or as good as it can. I've hooked up cheap camcorders w/ RCA cables, watched old movies, etc... I'm never dissapointed. I watch a good bit of regular DVD's and Blu-ray's. I have seen some 'banding' I think it's called.. but not much... and I think it might be the DVD and not the PJ because on some movies with lots of gradation, it looks smooth and perfect. Video is a weird mess of non-standard practices... hence, why I wasn't really interested in investing a ton into it.
BTW... A Sony Playstation 3 doesn't do 7.1 through toslink. It just won't. It'll do it through HDMI only. So, if I can either degrade the picture quality and run through my receiver.. but get 7.1.. or run 5.1 and run direct to the PJ... So, now I've got an extra pair of speakers.
Gee thanks, Sony.
-C