There are various components that can upscale the video signal, i.e. in the player (PS3), the A/V amplifier and TV.
If a TV is from the high-end series, it should give a better upscaling result than the PS3 or A/V amp. But it also depends on the individual's viewing preference. Using a high-end 1080p TV to upscale (which it actually does automatically anyway with whatever input source except 1080p), you can go into the TV menu and adjust all kinds of settings including noise reduction, sharpness, colour spectrum, Black level etc (using Sony TV as a reference).
Quality of upscaling also depends on the source material, some DVD's give better results upscaled and others you probably can't see a difference.
As some already mentioned here, just play around with the various settings and combinations and choose one which you judge based on your own viewing preference :)
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