Upscaling doesn't look near as good as native 1080p.

Well, for most movies. Some movie's (like Bram Stroker's Dracula), the Blu-Ray transfer is absolutely horrible, and looks like no better than the DVD version.

But yeah, for most movies, especially any titles released in the past 5 or so years, the Blu-Ray version looks much better than the DVD version upscaled.

As far as upgrading your collection, it's not worth it. I'd say only upgrade the movies that you REALLY love, particularly those that would benefit from a clearer picture (the only movies I'll probably re-buy from this point onward is the Lord of the Rings trilogy - my gosh it will look spectacular).

As for new movies, definitely get them on Blu-Ray.

I've Got A full 42inch 1080p HD LCD TV. I can certainly notice the difference but more so for TV show dvds than Film dvds ( the quality they're recorded in?)

yes they are.

It depends on how close you are to the tv.  My boss has a 29 in. television, and even he thinks Blu-Ray looks much better than DVD (and he actively buys them).

It all depends on your setup. Do you have a 1080p projector with 100" display? If so, you will notice a huge difference. Do you have a 720p 32" TV that sits 10 feet away? If so, you will not notice a difference at all.

I have a 50" 1080P TV that I sit about 7 feet away from. I notice a difference. I personally don't don't notice enough of one to update my DVD collection however. I will keep my DVD's, and if I buy new movies, buy them on Blu-ray.

The beauty of BD (and HD-DVD if it had won), is you don't need to upgrade your library. When S-VHS came out, I did not re-buy all my VHS movies, I just bought the new ones in S-VHS.

I guess I should have added I have a 40" Sony Bravia that does 720p/1080i. I usually play my games in 720p and watch movies in 1080i and I sit probably about 6-7 feet away. I also only have 5.1 surround and not 7.1..

downscaled 1080i looks better then upscaled 480i/p

I can readily notice the difference on my 32 inch 720p-1080i set.

I only own 1 Blue-Ray movie, Thats "Spiderman3".

It looks better on Blue-Ray...Its not worth the 30-40dollar price btw.

I have a 37 inch 720p TV and I notice a huge difference; so much so that I've become a video snob and I can't stand watching DVDs anymore. If you don't notice a difference, you really should watch Planet Earth on blu ray.