The DLP's are great monitors, you will enjoy it. In theory, an upconverting DVD player should handle the signal entirely in digital form, and so there are advantages because it's not going through a D-A conversion and sent via analogue to the TV. Slightly better contrast and color should be the result. You will not, however see a "sharper" image. You have a pretty good monitor there, so the difference between component and HDMI will be small. And of course, GIGO still rules. A crappy looking movie will still be a crappy looking movie. In my experience, the single biggest problems with DVD's is that they are mastered fairly poorly. But anyway, if you can get past the issue of needing multiple HDMI inputs on your monitor, by all means use the digital out on the DVD.