I'm waiting a little while before plunging into the world of Blu-ray players (there's some good kit coming out later this year) and am also waiting for Freesat PVRs to come on to the market, so I am currently viewing SD broadcasts only.
I watch Freeview via a Digihome PVR connected via scart and think the PQ is better than the in-built tuner of the Panny. I'm still running the set in at the moment on Cinema mode with contrast and brightness turned down and sharpness off completely.
I have invested in good quality coaxial cable, and Tacima Mains Conditioner & Radio Frequency Interference Filter to maximise as far as I can the viewing experience with SD.
The result........... it's a damn good picture and I'm sure this will only improve after the run in period. Ive bought the DVE calibration disc in readiness.
I have a Pioneer DV-LX50 DVD player that upscales very nicely providing excellent PQ.
All in all, SD PQ is very good and I cant wait for Freesat HD and getting a good Blu-ray playey later