In the April edition of the magazine there was an 'Upscaling Showdown' which concluded that, in most cases, the source was the better upscaler (compared with the amp and the TV). So it's not an issue, your BD player will upscale DVD's. What you won't get is upscaling from SD sources such as regular SKY or freeview boxes.
I have the STRDG820 and PS3 and very happy with DVD upscaling. I also have a DVD/HDD Recorder into which I can feed my SKY signal and have that upscaled too, though to be honest I think the TV does a good enough job on the direct SKY connection.