.. and will it upscale them?

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Answers: 

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oui monsieur

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Yes. Blu-Ray Rocks Fa Sho!

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yes

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i know playstation 3 will play normal DVDs and upscale it... i feel upscaling depends on the DVD but i'm almost certain that adjectives Blu-ray players will play DVDs...

you cannot however play a Blu-ray disk on a DVD player...
i believe you could have next to HD-DVD... not to show my age :)

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