does the PS3 upscale/upconvert regular DVD's?

I am thinking about getting a PS3 to use as a blu-ray player (since its the cheapest) and I was curious to know if the PS3 upconverts regualr dvd's like what an upconversion dvd player does. (via HDMI output)

Thanks

Yes, PS3 does it better then PC and high end players. But Blu-ray destroys wuss dvd:)

You can even toggle the upscale on and off in playso you can see the difference.

http://www.firingsquad.com/hardware/autumn_2007_video_shootout/

Right on, this is sweet news. I remember earlier when the PS3 came out it was said that it didnt, and I looked on google (just s simple search) and found rumors of this and that, I just wasnt sure

Does it have an option for 480p/720p/1080i/p? or does it just default to a specific resolution?

You are partially correct, the early versions didn't upscale well however with later firmware updates it got full support to do so.

The PS3 will detect your TV highest resolution and will set it on that.

Don't forget to connect update firmware to latest version, after that it will upscale all DVD's.