Thansks Zumbo and Gatsby for the great info...
I was also thinking about a Sony PS3 for a little more, you get a network enabled Blu-ray player plus the gaming capability.
So my point is, I'm gonna need to do more research and read these boards here (great site BTW), and gain more knowledge of all of the options before buying something.
For now (now that the TV is here

I'm going to hook up the old DVD player to it and see how a couple DVDs look. The back of this old player has Composite (yellow) hook up which is how it was connected to my 27", it has Component (green, blue, red), and it has S-Video.
My guess is I should use the
Component (green, blue, red) to hook it up to my new HD TV for now, correct? What kind of resolution will I be getting from typical DVD movies? 480? 720, 1080i?