i like my sony dvd-560d. (probably a newer model is out by now). it features the on-board decoder and sounds pretty decent.
plus, it has a good picture. i kept reading in soundandvision about how the sonys do a good job of "in-letterboxing" (displaying a 16x9 image on a 4x3 screen) so that was an added benefit.
plus, i think it's only around 250 or so now...a good value.