Hello all
The 42" PWD7 (852x480) and PHD7 (1024x768) are both HDCP compatible via the Optional DVI or HDMI Input Boards.
Both units will accept, scale and display a 720P(60) and 1080i(60) signal - though not a 720P(50) and 1080i(50) signal.
If you want compatibility with SKY HD when it arrives and don't want the extra expense of a Video Processor that can convert 50Hz signals to 60Hz you may be better waiting until September when the 8 Series Displays arrive; they will accept 720P(50) and 1080i(50) signals.
The 42" PHD7 and PHD8 will both blow your £2k budget - and you'll have a very long wait on true 1920x1080P Displays; though you'd have enough time to push your budget up to nearer £4k which is more likely the price of a True HD resolution 42" Display when they arrive (if your thinking in terms of a Japanese manufacturer).
If your budget doesn't stretch to some of the latest 'Higher Resolution' Displays keep in mind an HD Signal Displayed on a very decent Standard Resolution Display (with HD signal compatibility) will often 'look' better than the same HD Signal on an inferior Higher Resolution Display.
HD source material and processing is not all about pixel counts - there's more to the image than just the 'detail' level; you can watch a fair few US TV shows that are recorded, edited and broadcast in HD and also broadcast in SD here in the UK and with a SKY Digibox and a decent Standard Resolution Display its not too difficult to spot that the show stared life as HD.
Best regards
Joe
PS RecordablDVDfan - I bet a lot of Displays only saw the light of day after a re-mortgage