Where you do your scaling depends on the equipment. I prefer to let my TV do the scaling as the scaler is better qulality than the HR20. My Panasonic TH-58PX600U uses Farjouda processing and the difference is noticable compared to the scaler in the HR20.rsblaski said:
Another advantage of doing this is for sports. I don't want or desire everything to be upscaled to 1080i. There are many sites on the net that describe why 720p is better for sports and action movies. Most dedicated sports stations purposely transmit a 720p signal. So, I let my TV scale and I am satisfied with the results.
You appear to be scaling on the HR20, then passthru on the Dennon, then the TV will do its own native scaling. I surmise that this is not the optimal way of doing it, but it really comes down to what looks best to you.