HTPGC,
The video processor in your Oppo UDP-205 is going to be better than the internal processor of most displays on the market (I'm sure there are some ultra high end AV processors and displays that are better, but they're not the kind of AV processor or display you can get at Best Buy, Amazon, Crutchfield, etc). It should be connected via HDMI-1 directly to the display and video output set to the native display of the TV, allowing the Oppo to do all of the video processing (page 53 of the manual). Upscaling in the Oppo player is awesome. Most DVD's look stellar.