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Originally Posted by Taxi
The idea behind a "transport" as apposed to a full-blown player is that you're going to use some other external device to do the decoding. What if something comes along that's better than HQV or whatever is "best" right now? If you buy the 2K Denon player, you're stuck. If you save $800 and get the transport, then you can upgrade later on.
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In this case you're not using an external device to do the video decoding, but rather the scaling/deinterlacing. And, the simple answer to your question is to just set the Reon-enabled player to 1080i if you want a different processor to do the work instead of HQV. If you want to go this route, instead of saving $800 and getting the Denon transport you can save $1600 and get any of the multitude of BD players out there and functionally use them the same way (and get the same quality, since another component will be doing the heavy lifting/deinterlacing).
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I know this concept is not unfamilar to you, so I'm not sure why you're arguing so passionately against it, other than that it's a Blu-Ray player, rather than HD-DVD. 
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It should be obvious, because its a $1200 player with the features and output quality of a $300 player, that's why!! It doesn't even match up to the $700 players with HQV processing! If an HD DVD player was so blatently underfeatured and overpriced I'd call it out as well.