Video upscaling in the player or the receiver - pro's and cons

[KiwiGee]

To all

First post ever so not sure if it belongs here exactly. I am putting together my first real home theatre. Have bought the new Samsung 1080p plasma (PS50P9) with HDMI 1.3 as well as KEF 3005 speakers. I am now working out what A/V receiver and DVD player to buy.

I have been contemplating the Onkyo TX-SR605 or the bigger brother Onkyo TX-SR875. It seems the 605 will do a good job audio wise but the major benefit of the 875 is video processing.

Do you think I would be better off buying the Onkyo 605 (which only outputs 1080i I think) and using the money saved to buy a good DVD player with video upscaling built in or maybe buy the 875 which will allow me to buy a cheaper but still good DVD player which only outputs at standard definition instead of 1080p.

I am tending towards the latter option but would welcome the thoughts of others on the best place for the video processing and/or upscaling to take place.

Cheers

Graeme