Just in case it affects the advice, the relevant equipment I am using is:
Yamaha DVD-C750 DVD changer
Yamaha RX-V2700 receiver
Toshiba Regza 42HL67U LCD TV
I am using the component video output on the DVD player to the receiver, and an HDMI cable from there to the TV. (The DVD player does not have an HDMI output.) If I bought the above mentioned Atlona AT-HD560, it would be connected between the receiver and the TV (as it has only an HDMI input).
If I went with the Oppo DV-981HD DVD player, I would use its HDMI output to the receiver (to extract the audio) and from there to the TV.
One advantage to the Atlona processor over the Oppo DVD player is that I could pass any video source through it (though, at present, I have no intentions of using its PAL/NTSC conversion capabilities with anything but the DVD player). One advantage to the Oppo DVD player is that I would be keeping the video signal digital all the way to the TV. Both cost close to the same, so there is no great price advantage either way.
Also, I do not wish to spend any more money than necessary for good results. Right now, I have to downconvert PAL DVDs to NTSC in the DVD player before sending it onward, as the receiver does not convert between PAL and NTSC (though it works with both signals) and the TV cannot properly deal with PAL signals at all. So, with my current situation, I am throwing away lines of resolution whenever I play a PAL disc. This is why I am thinking about the above processor, or simply replacing my DVD player (or adding another and keeping what I have, as I like having a changer, particularly for SACDs).