[quote name='espy605']VGA is analog, which is why DVI was created (even though DVI-A is actually analog and not digital). It has nothing to do with having a digital connection.
You can get Xbox Monster component cables for like $10 shipped, which is truly worth it for XBMC alone, not to mention almost all Xbox 1 games will display in 480p, some even higher. It will upconvert your DVDs through XBMC so give that shot.
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Keep in mind that monster is only worth it for about 10.00. You will waste more money on cables by buying into the monster myth. However back to the OP. This is a easy question to answer.
But I will give you three options
1) PS3: Plays games and obviously you play games, good dvd upscaler, and Blu ray. This is my main DVD player for my 50" Sony and I love it.
2) HD DVD Player: All of them upscale well some better then others. I personally own an A3 on my 26" Vizio and it does a good job. It plays HD-DVDs yes it's a dead format but I have been buying a lot of moves right now for cheap.
3) Oppo: The BEST up convert dvd player you can buy. Honesty if all you care about is your DVD collection not any of the other stuff above get an Oppo. Don't even think about any other player really. All of the oppo players have been reviewed HIGH and you can't go wrong with any of them. Just go to the site
http://www.oppodigital.com/ all look at the features of them and see were you can save some cash.
Now if it was me I would go the PS3 route it's the trifecta. Cost wise I would spring for a cheap HD DVD player and grab some cheap moves from amazon.com. If its all about DVDs then bite the bullet and grab in oppo you wont regret it.
[quote name='von551']what about the oppo HM-31? it's not their top model, but it's $100. it's supposed to upconvert to 1080p, any diff between this and their $300 model? any one have experience with this model? thanks.[/quote]
FYI thats just an HDMI switch...