Choosing the right upscaling solution - advice needed!



Hi guys,

I have been long dealing in hifi but some of the new video developments left me baffled. I am pretty satisfied with my system with two exceptions -I will need a new 37" LCD (eventually the new ClearView range from Philips or Sony X series), and the progressive scan picture coming from my satellite box is not good.
I would like to find a solution where the picture from all my sources -DVD,STB, even video - is upscaled via HDMI to two outputs - TV and projector. The following two alternatives come to mind:

1. Change the Denon 3802 (and I like its sound immensely) to the new Yamaha 2600 or to Denon 4306 (better decision in terms of sound). Net cost will be about 550 pounds.
2. Buy a dedicated upconverter/scaler. Here I have two subalternatives:
2.1. Buy iScan HD+ for a cost of about 450 pounds
2.2. Buy the new iScan VP30 for about 1000 pounds.

My natural inclination is for alternative 2. I would appreciate any comments and experiences in this area. I am not convinced if I need 1080p scaling but will be good, of course. Cost saving also matters, even though quality and ease of use is first priority.
Thanks a lot for your comments or advices. Come on guys, tell me what you would do!;)

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