its a matter of factors that all need to come into play. the First on the list is your display/tv, even if you have a high end set you can still pull a bad picture out of it. The default setting most tvs come with usually suck, they have the contrast turned all the way up for a brighter display in the store. At home you do not need contrast set to 100%. then you have skin tones, saturation, hue, color temp, ec... You can eye ball the settings, use a thx dvd or dvd optimiser kit to set your set up or you can get the pros to do it for the best results.
then the source is next. It you have a native 1280x720p set and you feed it a 640x480 (sdtv) signal its going to look like crap. you tv will have to upscale the image to fill in the missing pixels. Some tvs do a great job at this and some suck at it. So you will all ways want your source signal to match or better your tv. with blu-ray you would want a 1080p tv. but a 720p set should be just as fine too.
still on the source here, just because its blu-ray doesn't mean you will be getting the best picture. This is more out of our hands. It has to do with how the movie wash shot, mastered then encoded and transfer to blu-ray. Some movies no matter what just wont look all that great in HD (more of an art style like added grain 300, or artifacts+grain grind house movies). then you have the video codec, (the form of compression used on the video) can affect the overall quality. I don't feel like getting into them but I will name and give links. MPEG-4 http://en.wikipedia.org/wiki/MPEG-4 MPEG-2http://en.wikipedia.org/wiki/MPEG-2_VC-4http://en.wikipedia.org/wiki/VC-1
Then you have the cable you use. you have HDMI (full digital) vs Component (analog). HDMI would be considered the best, don't let them fool you into thinking component is bad. If you have just an average tv and you are running 720p to 1080i component will do you just fine. HDMI is more the holy grail of video cables because of its all in 1 capabilities. before you had to have a 5 cable component and an digital optical or cox cable. That was a mess to hook up and just ugly behind anyones setup. you get all that out of 1 cable. It also can pass full HD 8 channel sound too. It also has hdmi 1.3 witch has more bandwidth and over one billion colors up from 16.7 million. but too take advantage of full Hd sound you will need a new far and few receivers with speakers worth thousands, to get billions of colors you will need a new Tv that doesn't even exist yet. you see where I going. I would say if you Have blu-ray and a 1080p tv get HDMI, If you got 720 get hdmi but don't spend too much, other wise component are fine.
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