I bought a Panasonic upconversion DVD player (DVD-S52) for around $60. It requires a HDMI connection to output 1080i. With component video connection it only outputs a 720i. We also bought a PS3 which at $500 a year ago was a great deal and it does 1080p. Fortunately the Dish Network DVR only need Component video connection. There are not much equipment and content for 1080p yet.
So buy a TV with as many HDMI input ports as you can.