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What do you mean by processing? The player will still convert to 480p, or upscale to 720p or 1080i if it is a scaling player. In dvd players, all "processing" is done when the signal is digital. If sending it to the display via component, it is converted to Analog before sent out. Using DVI out simply keeps the signal digital to the TV. All the normal MPEG decoding, progressive scan conversion is still done as it always was. It's just now sent to the TV in digital form.
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