Best Answer - Chosen by Voters
You have some good questions and I will do my best to answer them. But first let me say that up until a week ago I also did not know much about up-conversion vs. standard, or 1080p vs. 1080i. I have spent the last week, about 6 hours a day pouring over all the informaion I could get my hands on such as expert reviews, user reviews, and tech pages. So much research that I am starting to feel like an expert myself (but probably not). So I will give it my best shot. I will include links to specific information that I found helpful.
First, an upconverting DVD player is only worth getting if you have an HDTV and are not yet planing to get into HD-DVD's or Blu-Ray for the time being. And second, not all upconverting DVD players are equal ( we will come back to that later)
Lets go back to the your question: "Does this machine magically insert pixels of information where the DVD doesn't have any so that it can achieve the "Near-HD" quality that they are boasting?" First, if they are calling it "Near-HD" quality, they are streching the truth. Second, saying "magically insert pixels of information" is not all that far from the truth. Here is one link that I found to be a great help in understanding this:
http://www.av-outlet.com/en-us/dept_335.html
The upconversion DVD players actualy use a kind of chip that uses mathamatical algorithims among other things so that the machine will take the picture it is given and do its darndest to make it look the best it can on your HDTV (Again, if you don't have an HDTV and don't plan to get one, don't bother with upconversion.)
And like I said before, not all DVD players are created equal. The quality of the upconversion depends a lot on what upconversion technology is used. In basic upconversion players there is only slight improvment. In the DVD players with the best upconversion chip, I have seen many reviewers give it a "WOW." While they admit it is not HDTV they say the difference is noticable. Some people have had to adjust some settings to get the best picture.
From my research it seems the best upconversion chip is the Faroudja DCDi chip. The reviews of the DVD players that use this chip are the ones I have heard the most "WOW" from. This is the DVD player I will buy and a link to its review:
http://reviews.cnet.com/video-players-and-recorders/oppo-dv-981hd-dvd/4505-6463_7-32327927.html?tag=prod.txt.2
Source(s):
Listed in artical