Plasma TV with DVD conversion surround sound …, Tech Guys and gals, I need your advice!?

Okay, I'm thinking of buying a Panasonic Viera 42 "plasma TV in the next couple of weeks. I have noticed that all units of the latest surround sound come with the convert and HDMI ports for better picture. Now I have a 32 "LCD, an old DVD with surround sound and (3 years) and an Xbox 360 Elite. Now I think the Xbox would be able to play DVD's on the right better? The 32 "LCD is 720, while the plasma I'm looking for will be in 1080. I guess my question is, will the picture quality be good with the 42 "Panasonic Viera un PZ80U and convert new surround sound until I can get a blu ray player or is there another reasonable combination should I be looking at. So technology and all you gals out there, feel free to put their knowledge to me! Thank you!

You need an HD drive for the 360 to play HD-DVD movies (you would not want to do, since Blu-Ray won the format war).

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