I am going to be buying a new BD player down the line soon(Oppo or Panny)and I will be upgrading my receiver as well.If I get a receiver with good upscaling capabilities (ATB 2010) should I let the player do the upscaling or the receiver?
It depends upon which one does a better job. You will want to try each one, including your TV, and use whichever is better. Of course, it may be that one will be better for some discs, and another better for other discs, so you will want to select the one that seems best overall. The long and the short of it is this: You only need one thing to do a good job at upscaling, so there is no sense in paying for it in devices where it is not needed. Thus, if you have a great upscaling player, your receiver need not be any good at all at it, and neither does your TV. If your receiver is great at upscaling, then you don't need your player to be any good at it (provided it can pass an unmolested signal), and neither does your TV. If your TV is great at it, you don't need it in either your player or receiver (provided they can pass an unmolested signal).
Now, if you have multiple sources that you need to upscale, then,
if cost is the same in each device, it makes the most sense to buy a good upscaler in either the receiver or TV (or as a separate device), so that it can upscale multiple sources. But unfortunately, you will almost certainly end up paying for upscalers that you don't need, and will not use. There is a good deal of processing capability that goes wasted; I use only the HDMI output on my BD player, and so all of its video and audio analog outputs are not used, nor is the digital to analog circuitry that supports those outputs.
