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If they don't mind spending several hundred:
I would recommend a PS3 since your T.V. supports 1080p.
If they're not digging the whole Blu-Ray scene, they could use it as a upscaling DVD player (verify?)...

If they do mind spending several hundred:
They could just get an upscaling DVD player.



http://www.youtube.com/watch?v=iyLhpUPNPIs

360 IS OPERATIONAL AFTER 37 DAYS!