1a. Progressive scan is a conversion process typically listed by DVD players where they take the information on a DVD disc and convert it from 480i to 480p. There is tons of info on the web on what 480i is exactly and what 480p is, but a quick breakdown is that video is made up of 480 lines that is shown at 30 frames per second. Interlaced video breaks those 30 frames into 60 half frames. Frame 1, 3, 5, 7, etc. so the odd numbered lines while frames 2, 4, 6, etc. show the even numbered lines. With a progressive scan signal, you end up with all 480 lines shown all the time. So frame 1, 2, 3, 4, etc. all show all the lines. Yes, more data.
1b. If you are happy with the cables you own and they look good, then there is no reason to upgrade. I use coaxial cable from Home Depot for most of my cabling and it works awesome. You will very likely NOT see a difference between a $10.00 component video cable and a $500.00 component video cable. Other than what you mind wants you to believe you see since you paid so much.
1c. If you do want to throw some money away, check out
www.bluejeanscable.com as they provide excellent cables for fair pricing.
2. No. Nothing wrong with Monster stuff except it tends to be a fair bit overpriced - much like Bose.
3. The Avia or Digital Video Essentials discs are available from various stores online including
www.smarthome.com If you need to adjust black level as well as highlights you need to adjust both contrast and brightness. Not just brightness.
4. What TV do you own? If you have a good TV then it will do a very good job of converting interlaced video to the native rate of the television. If you own a DLP or LCD set (or LCoS) then you have a fixed pixel matrix that everything is scaled to anyway. I personally would want about a $100.00 progressive scan DVD player but think the upconverting ones are a waste of money. HD discs will be out in a year or so - I would save my money for the PS3 and play HD movies and be stoked on that.
5. No, the XBox does not upconvert, but 720p games are supposed to look phenomenal, so if you buy it, buy it for the quality of the games, not the DVD player.
6. No, it does not matter.
7. All DVD video discs are encoded on the disc at 480i. This was part of the pre-digital television spec of a decade ago and things are quickly changing. HD-DVD and Blu-Ray Disc will allow for different video formats to be recorded on their discs and will (likely) allow for multiple output formats that will best match your TV.
8. If your TV is 640x480 it is not technically HD. Current specs call HD any 16:9 television with a resolution above 720 horizontal lines. Your TV will never have more than 640x480 pixels so if you feed it a higher resolution source, like 720p or 1080i AND your TV accepts those resolutions, then it will convert them from the higher resolution to the lower, native resolution of your set.
As I said, you didn't really specify your type of TV... some sort of LCD flat panel? That could make a difference. Most buyers go out and buy a set, then wonder why it doesn't look as good in their homes. Feeding your TV ACTUAL HD content via cable or satellite should make a huge difference. But, the TV, if it is only 640x480 is well behind the curve for HD display capability and may never give you the results you want.
Good luck!