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Blu-ray versus upscaled DVD?

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I have a large collection of DVDs. If I was to buy a Blu-ray Disc player, will they be upgraded to HD?

I also have a Panasonic up-scaler to 1080p. Is there a difference between this unit's output and Blu-ray?

Lastly, what's the recommendation on the best Blu-ray to buy regards price?

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