The EH-DM3 isn't HD-ready. With a resolution of just 960 x 540 pixels, it's some way off high-def. If you depend entirely on the front-loading DVD player, that's not an issue, though Epson does nod to the world of HD by offering a HDMI input that's capable of showing a Full HD feed from a Blu-ray player or games console. There's not an awful lot of point doing that because of the SD resolution, though Blu-ray discs do look a touch better than bog standard DVDs.
Though it's best considered as a Nintendo Wii add-on or a "my first projector", the EH-DM3 can easily form part of a dedicated DVD home cinema set-up. Possessing Component video and Composite video ins, it's also got a USB port on its rear for playing music, displaying pictures and showing DivX video files. And if you're not happy with the quality of the speakers - and for most movies, you probably won't be - there's a Coaxial output that can take Dolby Digital and DTS digital surround sound to a home cinema.
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