Most Blu Players can upscale Dvd's as long as you use a HDMI connection but they cannot upscale the audio and although the image will be fine it isnt quite on a par with the overall quality of Blu Ray. You will be able to see this once you get your new set-up. To get the proper Blu Ray experience you really need to invest in an AV Amp that can cope with the latest Audio formats eg DTS Master Audio and a decent Surround Speaker set-up but of course this doesnt come cheap but is breathtaking when watching good quality Blu- Ray's. It amazes me that all to often people overlook the Audio aspect when watching movies and just settle for a Tv and player, i always feel that they are missing out and not seeing the movie as was intended to be seen/heard.
Hope you enjoy your new toys!