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Watching video files from an SD card is not widely supported (if at all) in standalone Blu-ray players. I think the PS3 might (owners?), but you're probably better off using a cable connected from the camera.

I'm going to throw out what I think is one of the best deals out there right now: the Insignia NS-BRdvd3 for $99: http://www.fatwallet.com/forums/hot-deals/960904?highlight_key=y&keyword1=insignia

Now the video quality should be great, though many call into question the craftsmanship just because of the insignia name (with very little basis in personal experience). If it were me in the market, I'd take a $99 gamble.

Edit: Whoops, just noticed the priority on DVD upscaling in your post. Reports are that the Insignia doesn't do so well there. Might not be for you after all.
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