Upscaling is performed by your video card, which will scale the 720x480i DVD to the native resolution of your display (ideally, though it may take some effort depending on your display and card). It's done by the card's drivers. Upconverting is applying post-processing to your image, such as sharpening of defining algorithms to fill in the missing pixels. Upconverting is handled by the CPU. Both are rather blurred in which is which, especially in an era of GPUs that can handle HD signals. Essentially, I'd say the difference is more in control over how the conversion is done anymore though at one time the complexity was the variance. Think of it like this, at 720x480 you have that many defined pixels but with a higher definition display you have many more. How the pixels get filled in is the process of concern. Essentially, if you can display your computer image you have scaled the display to the resolution of your monitor. For someone with a basic know-how, it's a relatively easy process.
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