Plama TV's by Nature are a progressive Output. They simply cannot display and interlaced signal due to to the Fixed pixel nature of the panel (Same with LCD/DLP/DILA Projectors) Therefore Every Plamsa TV has some sort of Progressive conversion circuit.

The REAL question is which device has the better Conversion Circuit? If its a $199 DVD player, I would be the TV has the better scaler and you'll get better quality using a Interlaced signal int the TV, If its a 999ES, THen the DVD definatly has the beter circuit.

Havent played with the New 42" sony plasma much yet, but there is usually a way for the TV to either be set or automatically sync on a Progressive or Interlaced Signal. A progressive signal will bypass the TV's circuit in most cases and therfor you will not have a problem.

THe Problems you may be refering to are with 1st Gen Plasma Displays which were not simply did not know what a Progressive Componant signal was. These TV's need a Componant to RGBHV adaptor to bypass the Circuit.