new tv time was my first thought then remembered that free view HD is being rolled out this year so you could get an hd pvr which all have all do 1080i which would be the better option for your screen as throwing away pixels is easier to do.
Regards the DVD player buy a low cost blueray machine which will scale your old DVDs and allow blue ray playback as well. Check you tv can do 24fps though otherwise blurays will judder on slow pans.
Or get a new tv which At that sort of size can be got very cheap.
Paul
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