PS3 or Dedicated Blu-Ray Player
Update:
I have got Denon DBT-3313UD and hookep up to my setup.
Not able to feel difference in picuture quality. May because its limitation of Projector, will try to give a close look on TV.
I ran Spirder Man from MAC ( digital copy ), PS3 Fat and DBT-3313UD.
PS3 Fat - Sound output dobly digital
MAC - Sound output dobly digital, slightly better or same as PS3
DBT-3313UD - Denon shows me status True HD sound and there is difference in sound. ~ 10% better sound. Also I ran Netflix on Denon and sound was better than PS3 , ( MAC/PC only does sterio for netflix so no comparision).
Now I am in dielemma if I should try sony BDP 790 as well for comparision.
Update:
I have got Denon DBT-3313UD and hookep up to my setup.
Not able to feel difference in picuture quality. May because its limitation of Projector, will try to give a close look on TV.
I ran Spirder Man from MAC ( digital copy ), PS3 Fat and DBT-3313UD.
PS3 Fat - Sound output dobly digital
MAC - Sound output dobly digital, slightly better or same as PS3
DBT-3313UD - Denon shows me status True HD sound and there is difference in sound. ~ 10% better sound. Also I ran Netflix on Denon and sound was better than PS3 , ( MAC/PC only does sterio for netflix so no comparision).
Now I am in dielemma if I should try sony BDP 790 as well for comparision.
If you can demo why not?
Your findings are similar to mine. Denon 3313UD is a seriously good machine. I doubt if the Sony can beat it. No harm in demo though. 
Playing BluRays there is no difference between players on sound or picture provided you have the settings correct. Upscaling DVDs on the other hand is at the whim of the device that does the upscaling.
Agree with Another Joe.
The signal into the AV receiver is the same from the PS3 as it is from the most expensive players you can buy.
OK. Here's a laymans explanation. I hope it helps.
A full HD TV has 1920 pixels across and 1080 down. So, when one has a Blu-ray player connected to such a TV playing a 1080p Blu-ray movie, with no picture overscan, just 1.1 pixel mapping, what is happening?
What's happening is that each individual pixel is being instructed, it's being told exactly what to do, ie, what colour to emit and for how long.
These instructions if you will, are contained on the Blu-ray disc, they do not change, ever. They are exact. No Blu-ray player can change them.
So if you use different BDP's to play the same 1080p Blu-ray movie on the same TV, the results will always be the same, each pixel will always be told to do the same thing for the same amount of time, every single time.
This is why no BDP can have any effect on 1080p image quality.
To be smoother with motion they would need to give different instructions.
To be less grainy, they would need to give different instructions.
To show deeper blacks, they would need to give different instructions.
BDP's are not intelligent, they pass on the instructions from the discs.
These instructions never change, and this is why 1080p image quality is exactly the same between BDP's.
Differences are simply not possible.
These instructions if you will, are contained on the Blu-ray disc, they do not change, ever. They are exact. No Blu-ray player can change them.
Not entirely true. Ironically, some of the more expensive blu ray players can add unwanted artificial video processing. Most players faithfully reproduce what's on the disc.
OK. Here's a laymans explanation. I hope it helps.
A full HD TV has 1920 pixels across and 1080 down. So, when one has a Blu-ray player connected to such a TV playing a 1080p Blu-ray movie, with no picture overscan, just 1.1 pixel mapping, what is happening?
What's happening is that each individual pixel is being instructed, it's being told exactly what to do, ie, what colour to emit and for how long.
These instructions if you will, are contained on the Blu-ray disc, they do not change, ever. They are exact. No Blu-ray player can change them.
So if you use different BDP's to play the same 1080p Blu-ray movie on the same TV, the results will always be the same, each pixel will always be told to do the same thing for the same amount of time, every single time.
This is why no BDP can have any effect on 1080p image quality.
To be smoother with motion they would need to give different instructions.
To be less grainy, they would need to give different instructions.
To show deeper blacks, they would need to give different instructions.
BDP's are not intelligent, they pass on the instructions from the discs.
These instructions never change, and this is why 1080p image quality is exactly the same between BDP's.
Differences are simply not possible.
Blu-ray players do have different components though, and for example my Pioneer has noise reduction component so it is manipulating the picture different to other Blu-ray players. The result is a different picture. And to take Pioneer as an example again the 91 has a deep colour component, which results in a slighty brighter picture. Some Blu-ray players I have demoed are similar, and I except that the differences are small between each Blu-ray player, but if you notice the small differences, then you are probably going to spend more on a Blu-ray player.
I have found my Pioneer better than Blu-ray players costing twice as much, so each to their own with what picture they like.
These instructions if you will, are contained on the Blu-ray disc, they do not change, ever. They are exact. No Blu-ray player can change them.
Not entirely true. Ironically, some of the more expensive blu ray players can add unwanted artificial video processing. Most players faithfully reproduce what's on the disc.
Yep, agree.
These instructions if you will, are contained on the Blu-ray disc, they do not change, ever. They are exact. No Blu-ray player can change them.
Not entirely true. Ironically, some of the more expensive blu ray players can add unwanted artificial video processing. Most players faithfully reproduce what's on the disc.
The various controls on the TV could probably do the same thing.
OK. Here's a laymans explanation. I hope it helps.
A full HD TV has 1920 pixels across and 1080 down. So, when one has a Blu-ray player connected to such a TV playing a 1080p Blu-ray movie, with no picture overscan, just 1.1 pixel mapping, what is happening?
What's happening is that each individual pixel is being instructed, it's being told exactly what to do, ie, what colour to emit and for how long.
These instructions if you will, are contained on the Blu-ray disc, they do not change, ever. They are exact. No Blu-ray player can change them.
So if you use different BDP's to play the same 1080p Blu-ray movie on the same TV, the results will always be the same, each pixel will always be told to do the same thing for the same amount of time, every single time.
This is why no BDP can have any effect on 1080p image quality.
To be smoother with motion they would need to give different instructions.
To be less grainy, they would need to give different instructions.
To show deeper blacks, they would need to give different instructions.
BDP's are not intelligent, they pass on the instructions from the discs.
These instructions never change, and this is why 1080p image quality is exactly the same between BDP's.
Differences are simply not possible.
Blu-ray players do have different components though, and for example my Pioneer has noise reduction component so it is manipulating the picture different to other Blu-ray players. The result is a different picture. And to take Pioneer as an example again the 91 has a deep colour component, which results in a slighty brighter picture. Some Blu-ray players I have demoed are similar, and I except that the differences are small between each Blu-ray player, but if you notice the small differences, then you are probably going to spend more on a Blu-ray player.
I have found my Pioneer better than Blu-ray players costing twice as much, so each to their own with what picture they like.
I have to agree to liking Pioneer products though, I've always admired them and longed for a Kuro LX5090. Actually there's one going near me for a thousand Euros with warranty until 2014. I'm very tempted 
True. Hey, there is a Pioneer 5090 going at the Home Cinema Centre could be worth a call on price. 
True. Hey, there is a Pioneer 5090 going at the Home Cinema Centre could be worth a call on price.
True. Hey, there is a Pioneer 5090 going at the Home Cinema Centre could be worth a call on price.
No probs, they do ship them too, I am not sure that far, I have found the GT50 to be very similar in performance to the 5090 too.
Update:
I have got Denon DBT-3313UD and hookep up to my setup.
Not able to feel difference in picuture quality. May because its limitation of Projector, will try to give a close look on TV.
I ran Spirder Man from MAC ( digital copy ), PS3 Fat and DBT-3313UD.
PS3 Fat - Sound output dobly digital
MAC - Sound output dobly digital, slightly better or same as PS3
DBT-3313UD - Denon shows me status True HD sound and there is difference in sound. ~ 10% better sound. Also I ran Netflix on Denon and sound was better than PS3 , ( MAC/PC only does sterio for netflix so no comparision).
Now I am in dielemma if I should try sony BDP 790 as well for comparision.
Why are you using optical for the fat PS3 ? - that wont give u HD sound.
To hear the difference between DD/DTS and Dolby True/DTS HD swap between the following....
Fat PS3 hdmi to amp and bitstream selected - DD/DTS sound
Fat PS3 hdmi to amp and LPCM selected - lossless DolbyTrue/DTS HD sound
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No review can beat what you personally see / hear. A personal demo / experience is always the best.
My Home Cinema Pioneer KRP 500A, Yamaha RX-V1900, MA Radius R225HD LCR, R90HD rears, AW12 sub, Panasonic BD60, PS3, Boxee Box, Sky HD, Boxee Box, Logitech Harmony One, Logitech PS3 Adapter, Sonos ZP90
Bedroom Samsung UE32C6510, PS3 slim white, Apple TV, Sonos S5, Sonos ZP90, Audioengine 2, Oppo OPDV971H
Miscellaneous: Synology DS212J + 2 X WD Red 2TB drives, WD 1TB NAS, Sonos ZoneBridge, BT HH3 as modem & AirPort Extreme router