I confess I don't know much technical detail of upscaling, but I have my doubts you will see much benefit from a computer output. This would be correct if the upscaling is tied to HDMI, since it will be expecting mpeg-2 over HDMI, but it will be getting DVI converted to HDMI from presumably a variety of media codecs. I guess you'd have to try it to be certain. Even if it does work over DVI-HDMI, I imagine it would only work on mpeg-2 videos so you would basically be using the comp as a DVD player. Again, I could be wrong. Seems odd to me that whatever video processor chip in the TV doing the upscaling would be able to improve on a 6600 from nVidia, a card which can run a 30" display at over 1080p, even while playing games when it is doing a lot of other things at the same time. The same goes for the G5 which I believe is doing the legwork when you run Apple DVD Player.
However if you want a cheat to get hd quality dvd rips or mpeg rips use the xbox 360 hd-dvd drive on your mac to incode the video from the quality is awesome and it gives you 1080I auto out put for regular dvd's i have one i use to incode my dvd's from best quality i have gotten out of mpeg 4 in years
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