RV,
Sorry, but no, this model won't upscale to 1080p from lower resolution sources. For Onkyo, only the 875 and 905 models will do that, and they are quite a bit more expensive. It will pass 1080p, though, so if your DVD player sends it a 1080p signal, it will pass that on to your TV.
Adam
EDIT: I'd like to clarify something. It will upconvert composite/s-video/component to HMDI. It will also deinterlace, so it can take 480i to 480p (and I'm guessing 1080i to 1080p). However, it won't upscale - for example, it won't scale a 480p signal to a 1080p signal.