[quote user="david_tring"]You mention that DVDs are inherently 480i/576i, although the 2930's default output setting is 480p/576p (all these are the HDMI connections of course).[/quote]
Even though the default setting for HDMI output is 480p / 576p, DVDs are authored at 480i / 576i. Is it possible to have your Denon 2930 output 480i / 576i via HDMI? If it is possible then you should have the player set to output 480i / 576i via HDMI so that you leave both the de-interlacing and the upscaling to your excellent Onkyo TX-SR875, which uses a Reon-VX chipset with HQV (Hollywood Quality Video) processing, which is considered to be the best video de-interlacer / upscaler on the market. I believe this system was originally used for professional applications, in the tv and film industry (I think). Basically you should leave everything to the Onkyo, which will use it's wonderful HQV processing to get the absolute best out of your standard-def DVDs. Don't get me wrong, your Denon player does also offer very good scaling and de-interlacing, as does the lovely Panasonic 32LXD700 tv, however in this case the Onkyo is simply better equipped and should provide a cleaner, sharper, more stable and an all-together better image.
The only thing now is to decide what particular high-def resolution to set your Onkyo to upscale to and then output. As your tv's resolution is 1366 x 768, which is closest to 720p, you might think it best to set your Onkyo to output at 720p in order to get the best picture. However your particular Panasonic tv has something called a 'Digital Re-mastering Processor 1080p'. This basically means that the tv's processor has been designed to upscale incoming signals to 1080p and then perform a simple downscale to match it's 1366 x 768 resolution. Because of this, if you set the Onkyo amp to output 720p, then your Panny tv may end up upscaling to 1080p and back down again - creating an extra and unnecessary step, which will lead to loss of picture information (pixels) and therefore will cause some image deterioration. For this reason, and the fact that even though your Panny doesn't have a native 1920 x 1080 resolution it is still designed to work best with 1080p signals, I think that you are best off having the Onkyo set to output at 1080p. Then when the 1080p signal is received by your Panny tv, the tv will just have to do a simple down conversion to match it's resolution of 1366 x 768. Having your system set up in this way will actually involve the minimum amount of scaling that is possible with the particular components you have.
So, just to recap, set your Denon DVD player to output 480i / 576i via HDMI to your Onkyo amp. Then, set your Onkyo to upscale and output at 1080p via HDMI to your Panasonic tv, which will then do a simple downscale to fit it's screen. This should bring you the best possible results as it leaves the interlacing and scaling to the superb Onkyo with it's superior HQV processing.
While I very much believe that you will get the best possible results by having the Onkyo set to output 1080p (as I have already said), you may as well also try setting it to 720p just to see how well that works. I wouldn't bother to try having the Onkyo set to output 1080i as there's not really any point because 1080i isn't either a) closest to the tv's native resolution (like 720p) or b) the highest (and best) resolution that the tv will accept (like 1080p). Having said that, there's no harm in giving it a go just to experiment, even though I am absolutely positive you will get the best results by having the Onkyo set at 1080p. The main thing to remember is to leave all (or as much as is possible) the de-interlacing, scaling and processing to the superior Onkyo with it's superior Reon-Vx and HQV system.
I hope you enjoy yourself David, and I hope that I haven't been too repetitive. Also I would really like to hear from you about how you get on.