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Having had this combination up and running for the last month can I say how pleased I am with the results so far.After tweaking the picture using a mixture of calibration disk and settings suggested on this and other forums,I now have a picture that does produce the "wow"feeling,especially from friends and family.
I've gone the hdmi route between dvd and projector and everything else (Ps2,X-box etc)through the Arcam Avr300 via component.
Should be spending hours wading through my Dvd collection if it were'nt for the fun of playing WE8 or Pro-Evo4 on a big screen.
Although I can't really see a great difference in the picture if fed interlaced or progressive from the Dv79 I have wondered just what improvement might be expected from an external scaler able to match the Sony screen resolution.
Scalers seem ,from what I read on the forums,to be becoming an important part of a home cinema set up,but do add a not insignificant amount to the budget.It's the old problem of just how much of an improvement would one see?
If anyone has tried a scaler with this combination I would love to know there opinion.
Incidentally I had to wait ages (7 weeks) for Sony to upgrade the firmware on the Hs50 before I bought it from the dealer but given that the Arcam does'nt upscale it would need an external scaler to allow me to see the results.