Video scaling for a PTAE500

I was reading through this months Home Cinema mag, and couldn't help but come up with a few more questions after reading about the PTAE500 and the Samsung DVD player with DVI output.

Within the mag, they basically stated that upsampling for the video from 576 to 720 lines or resolution resulted in video "jumps" for PAL DVDs when playing from the Samsung DVD player.
Furthermore, it stated that the Samsung outputs a native resolution of 576 lines. Assuming that to be the case, doesn't it make more sense to run an AE300 with a native resolution matching that of the Samsung, rather than an AE500 which requires upsampling to make full use of it's native resolution?

Part of my logic is that I've tried my home TFT at lower resolutions that it's native settings, and it looks really lousy because it's interpolating data. I assume that the same is surely true of LCD projectors?

Am I missing something in my logic?

 

Scaling is unavoidable with projectors. Pal & NTSC DVD "resolutions" don't match the native panel resolutions of any projector IIRC, let alone the Panasonic models.

720p material is perfect for a 1280x720 res PJ but until hidef DVDs arrive, this is only available from WM9 etc.

So, passing a DVD video signal via DVI is all fine & dandy but upscaling is happening somewhere along the line, either PJ or DVD player.