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answering your questions completley out of order.

DNR helps reduce picture noise. when an image gets blown up that big, and is that clear you are going to see noise from interference. This helps reduce that on your TV, making a clearer picture.

No TV broadcasts are done in 1080p, some are 1080i. Blu-ray and HD DVD are then only two things that can attain 1080p. HD DVD is basically dead, so blu-ray is the only thing I would reccomend for 1080p viewing.

Try using component cables and switiching the 360 setting for HD (the switch is on the cables)

The Wii looks like crap on an LCD, sorry, I don't think component cables will make to much of a difference, but some should be seen.

I can't answer your first question.

You are going to want a PS3 if you get this TV. Blu-ray viewing is AWESOME and the PS3 has some pretty good games out now, with some huge blockbusters on the horizon.  Hope the wife lets you pick one up.