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That's because, with an HDTV, any source that is less than the native resolution of your display will be upconverted by the TV. So, your DVD player output is being upconverted by your TV, while your Blu-ray player is upconverting the SD content it plays. If you can't tell the difference, it's...

Unless you're sitting very close to that 32" TV, it's going to be difficult to take advantage of the extra resolution that Blu-ray has to offer. And you would have a hard time reading some of the menus (they often use smaller text). The sound can be noticeably better on BD, but that's not much...