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stof said:
This all sounds far too complicated... Especially for someone like me who still watches movies on VHS.

ZOMG!  Someone get this man a DVD player! Now!

On topic:  Blu-Ray/HD-DVDs look awesome compared to DVD... 

@ stof

In store is not a really great judge of how an HDTV will look.  There's these big bright lights, so the cameras can make sure you're not stealing anything, and it makes the picture quality go down... also, for the multitude of reason listed above while they don't look that good.  If you go over someone's house that has the right setup (At least 720p, and a good surround sound), you WILL notice.