Well, I saw the new version yesterday, wiith component signals, and it looked like crap.
It had poor black levels, with no detail. And colors were too bloomy. This set was calibrated with DVE.
Also saw the new 55" Loewe DLP. It was fantastic!
I disagree with Claus above - progressive pictures off Xbox and DVD are fantastic - and i've lived with the set for a couple of months (although DVE settings didn't help me with this set at all)... but if I was buying now, I would also consider the 50 inch Sagem and the 42/50 inch new Sony LCD grand Wegas (both are reviewed in What Video this month)
I have viewed the LG DLP and the Sony new 42 LCD Grand Vega side by side and thought the LG had the better picture. the only gripe I had was that the screen is very reflective, I didn't notice any rainbow effect though which a few people have mantioned on the LG.