I am hopefully about to take the plunge with a 40" Sony LCD (V-Series)

I just need to convince the SOH on the aesthetics/size/cost!
having read a number of threads on this forum, i remain unconvinced that an upscaling DVD player provides a significantly better picture than prog scan over component. all i seem to see ae concerns with Blocking, poor quality DVD's giving poor quality output etc etc.
has anyone got an upscaling DVD hooked up via HDMI to a HD screen and if so are they really happy with the result?
In other words, is it worth going upscaling or would the prudent choice be to wait for HD DVD &/OR BluRay to get themselves established in the market place and get a true HD output to the HD screen?
Kevin