A lot really depends on how "good" your TV is. Since it is a Projection TV it will use CRT technology for the display. This means that the number of lines and dots it can display is relatively limited. In that case it would not make sense (in my humble opinion anyway) to put lots of advanced, high res video processing on the DVD player.
Nine times out of ten, the TV does a better job of processing the video (format conversion, upconversion etc.) than the DVD or Pre Amp. The video chain inside the TV is specifically designed to obtain the best results for that particular TV architecture. Sure, there are great video processing solutions inside some DVD players and PreAmps but the pointis in finding the right match for your TV and not over- or under-shoot.
Do make sure to use the best possible connectors from the DVD to the TV. Digital (HDMI for example) preferably if present or else YPrPb for analog. Turn off the upconversion/progressive scan feature on the DVD and let the TV handle this.
If audio functionality is important, go for a DVD player that supports SA-CD (or DVD-Audio if you prefer) and get a decent Amp for the Surround Sound. In general though I would not go for a low-end DVD player but get yourself a decent branded one. A lot depends on your budget of course. Personally, I feel that for example the Philips DVP720SA delivers a lot of bang for the buck (CD, DVD, SA-CD, MPEG-4, MP3 etc.).
Good luck!