DVD upscaling?

Hi,
I'm planning to buy a full HD (1080p) plasma to use with my mini as an AV server connecting via a DVI-HDMI cable.
My question is about upscaling standard DVD content:
If I play a 'standard' def DVD through the mini (either from the disc or from a ripped image) with the res set at 1920x1080, presumably any upscaling will be done by the mini whereas if I set it at a lower res, I can get the TV to perform the upscaling?
If that's the case, does anyone know whether the mini has an upscaler in it, or whether it just effectively blows the picture up?
If the former, does anyone have a feel for the quality in comparison to a decent TV? Also, presumably if it has one, the mini upscaler can be updated in software as better algorithms come along?
Thanks for any info or thoughts.
Regards
Matt

First a lot of people have been reporting problems whereby Mac OS X 10.4.10 has been limiting Mac minis to only 1080i resolution even thought it is capable of a full 1080p.
My belief is that playing a 'standard' DVD on a Mac with a higher resolution screen does result in upscaling. However whether this is better or as good as the dedicated chips like the Faroudja used in many high end systems is unknown.
However, I have seen comments and would agree that QuickTime itself (nothing to do with playing DVDs) is very good at upscaling video files. This would suggest Apple have some good experience at doing this.
Any upscaling the Mac is doing is purely is software (with possibly acceleration assisted by the graphics chip), and so potentially Leopard might improve this further. However with iTunes/iPod/iPhone/Apple TV, Apple has actually been taking video quality down hill rather than upmarket.
If you have an external upscaler as part of your AV system, e.g. a Denon AVR-4306 then you might want to choose to use it to do the upscaling. I would not rely on a TV's built-in upscaling.
So to summarise, first choice is an external AV upscaler, second choice is the Mac itself, last choice is the TV.

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