Faroujda DV1000 vs. Denon 1600 vs. Arcam DV88

I don't think that the Faroudja can read and output a DTS signal. This was an issue with some of the early DVD players. This may or may not be an issue for you.

I just bought an Arcam DV-89 and it does both audio and video beautifully. The next step up from here would be Meridian. For the money, look at the DV-78 before you consider any mass produced, low-fi consumer-marketed product such as Denon, Pioneer, JVC, etc.

Aren't the Arcams (DV-88, 88+, and 89) prretty pricey for not having progressive scan? Or does the 89, I haven't seen it spec'd. Technically progressive means a lot, but how does that translate?

You're right, they're not cheap in any sense of the word. The DV-78 is only $999 new. The DV-89 has progressive scan (which I'm not set up to use. It's for the future.). I believe the 88+ does also, just not DVD-Audio. I bought it as a great CD player which also just happens to play DVD-A and has an outstanding video card. I get close to the best in all of this in one box, so for me, it's a value.

I couldn't disagree more about the 'consumer-marketed' product such as Denon. The Denon DVD-2200 and 2900 are both using the Silicon Image SI504 chip, the same processing chip in the Ayre, and Arcam 78 and their DVD27 ---and a few others, I think Meridian also uses it?
If you go to the home theater dvd shootout you'll find the dvd players using the SI chip almost always blow away everything else - having said that, the Denon 1600 with the Faroudja chip (i don't know which one) came out in the top three dvd players tested.
Personally, I think Arcam dv78 is probably your best bet - and the Arcam 78 and 88+ both do progressive scan - but not the plain 88 as I understand it.
Best of Luck