I just replace a 5 year old Pioneer dvd player, component only and progressive scan, with an inexpensive...$80...Philips DVP5960 dvd player and use its' hdmi to my tv's dvi connection via a hdmi/dvi cable...cable cost $45 lol...
The pq difference was dramatic. The Philips pq is much much better, sharper, color saturation, etc. compared to the Pioneer for such short money.
I have no other commentary regarding other players but would say that any decent quality dvd player will run circles around an older player via the digital interconnects especially with one of todays tv's...my tv is only 3 years old but is a "budget" model though the picture is quite nice.
Check out this review site of todays players
http://www.hometheaterhifi.com/cgi-bin/shootout.cgi?function=search&articles=all
Many here, and on other forums, speak very highly for the Oppo brand and this review really touts the Oppo brands while pretty much hammering every other dvd player tested, some much harsher than others so perhaps a "grain of salt" is needed though that is only my opinion.
Good luck and keep us informed.