The PLV-Z2 does not support 1280x720 digital input. It maxes out at 1024 x 720 for some reason. When I first bought it in ~2006-7 I called tech support to make sure it wasn't a typo and because I was having a problem with my PC video output over DVI-D at 1280x720. Tech support confirmed "not supported"

I had the PLV-Z2 for 2+ years. Blu Ray does look absolutely pristine on this 720P projector with one BIG caveat. The DVI (DHCP) input on this projector does not always "play nice" with other DVI and HDMI source devices. For instance, it works fine with my Motorola Hi-Def cable box running DVI to DVI, but my upconverting Sony ES DVD player with HDMI output WILL NOT display on the Z2. Depending on the Blu Ray player you select, it may or may not display on your Z2 using the digital input due to compatibilty of HDMI version, cable quality and length, or whenther you're using an HDMI repeater device in the chain (there are many other factors too). If you do plunge into Blu Ray, which I think is worth the effort on this projector) I would highly recommend discussing an in-home trial or exchange policy in the event that your new player doesn't "shake hands" with the Z2. In every case I have encountered, unless there is a serious flaw in the source or display component, at screen sizes like a projector will be used (77"+), Blu Ray picture quality is a big step up from DVD, even when DVD is "upconverted" and 1080P Blu Ray is "downconverted" to the display's native 720P resolution. The resolution of Blu Ray is just so much greater than the 540 horizontal lines of the DVD format that you should see a nice improvement when switching to Blu Ray (all other factors being the same in your setup). On smaller screen sizes, the difference can be more subtle, but still noticeable. Good luck with your search.