Bought it to replace knackered Sony DAVS500, & could not be more pleased. Picture is excellent through my JVC telly & sound is much better than the Sony imo. DTS sounds particularly good & of course the Pro-Logic 2 is far better than the Pro Logic on the Sony.
The USB port is for JPEG's and Music (MP3 & WMA files only according to the instruction book. Can connect HDD & Flash Type MP3 players, Digital cameras, USB HDD or USB Flash Drives (USB2 is supported), & USB card readers. Only the FAT system is supported (not NTFS).
Small thing I know, but being able to use one of your own pictures as a "desk top" is a nice touch as well! No hesitation in recommending it for the money (£200 in Currys 3 months ago, so probably cheaper now).

Hope this helps.