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At present I don't think there is any problem with owning a box but the cable co. probably won't activate it.
But things should start to change soon.FCC hopes for competitive cable box market
You can currently get an HD DVD player for about $275-$300 plus 5 free movies mail in rebate.
http://www.avsforum.com/avs-vb/showthread.php?t=848281
Not sure about Blu ray, I think PS3 is still cheapest unless you get a first gen Samsung.
But it really comes down to will your sister prefer...
If you have $2k to spend you could do something like I did.
I purchased a 37" Westy for about $875 and a Mits HD1000u projector for $865
The Westy gets used when I'm not actively watching anything and the projector when I plan on sitting down and watching something.
I'd suggest going with a projector if possible. I have the Mitsubishi HD1000u with a 96" diy screen and love it. I'ts a 720p DLP projector for under $900. I got it to hold me over for a couple years until the 1080p pj's come down in price from their current $3k -5k pricetags.
Go with a projector. There's nothing quite like gaming on a really big screen. I have the Mitsubishi HD1000u with a 96" screen and it makes my 37" Westy look tiny. Sure lamps are expensive but I just set aside $5-10 a week into my lamp fund. Getting a projector is one of the best decisions I've...
I'd say the current Toshiba HD players do.
I have the Oppo 981 and the Toshiba HD A2 and I consider the A2 better at upscaling.
The Toshiba HD XA2 is considered to be equal to if not better than a $4k video processor/scaler. TEST RESULTS ON UPSCALING: XA2 vs. SDI+Crystallio 2
If you have the space and can somehow manage it , try clamping a piece of wood to the underside of the top. Should help to really cut down the mess on the inside as long as you don't drill through the wood.
This place makes copper sleeving. http://www.glenair.com/conduit/convoluted/customcable.html Maybe they could hook you up with some samples or point you to someplace you could buy it.