Hi McCann,
Your problem is that due to copyright. 99% of all Dvd players on the market will upscale to 720 or 1080 but it has to be with an HDMI connection. As your TV can't accept this, you have 3 options (well maybe more but in my opinion....)
1 Check this site for the 3 models that do upscale via component. They either flouted the copyright issues or just went ahead anyway! I think one is a Samsung, the other 2 being Helios (2000 and 4000 models?)
2 This site contains great info as to the merits of getting an upscaled dvd player in the first place! Bearing in mind that if your TV can accept an HD signal, it has an inbuilt upscaler to do the necessary when a 576 line signal is received (ie terrestrial/digibox/Sky). So, with this in mind...get a brilliant dvd player with progressive scan that doesn't have HDMI and upscaled facilities. Being an Arcam fan, you can purchase a 2 old model the DV 79, brand new now,from around £299 (originally £800). Moorgate Acoustics in Sheffield have bought a job lot of this discontinued model. However, trawling the internet can get you the top of the range Sony DVPNS999ES and Marantz models that 2 years ago were fetching £1k for silly prices today. All because people think that you have to own an upscaled DVD player! It's worth looking at back issues of dvd reviews on the internet. You'll get the proper model no but more importantly the specifaction of each. However, the above mentioned models don't play Divx. If you really do need this facility, then the above info is useless unless you can live without Divx or use your existing machine when needed. I can't comment on the USB port available on other machines. More research required! Going back to the component issue though, i really do think there is a difference when using progressive scan. People though forget that whilst virtually all machines offer this facility (like the Arcam etc) it can only be used via component or HDMI. This is due to bandwidth and Scart doesn't come up to the mark. There is a great article within Faqs by Nicrhodes as to the difference between component and scart. Type in Component vs Scart in the search box to find it! You have component, so this is a plus!
Because of the above, I wouldn't rule out buying a 2 year model. The PQ will be in some cases superior to that of a cheaper upscaled version. The sound too (esp the Arcam) should be better. Throughout the Christmas hols, I have been researching/demoing etc re buying a newer model. I finally made my decision and am waiting to buy and HD machine instead! Which leads me onto Point 3 and the most expensive of all possible solutions...
3 But a new TV or Projector or both! These will have all the connections you want. The TV/Pj will upscale the existing signal via component-so if you go for the Arcam, no problem here. You have futureproofed yourself for HDMI equipment. Mind you, if you can afford a new one (say £1000) then you could afford the HDMi cable! 10 metres (if that is the length you require) can be obtained on the net from around £40. My local independent stocks 2 ranging from £50 to £60. You can pay a lot more though and that is a different debate entirely! The DVD player with USB and Divx will have to be purchased. There is obviously a reason why you need a USB port so I'd be interested why this is important to you.
I hope the above helps.
Martin