Bought one on Ebay and took advantage of 30% Microsoft Cashback ($245 shipped minus 30%).
BluRay is definitely an improvement (if you have a TV capable of 1080p), but there are 2 potential downsides to this particular machine:
1) Remote is awkward and buttons counter-intuitive, and
2) machine has no 'slow-motion' capability. Has 'Pause' but no slo-mo.
Thought of a couple other things:
3) This Sony has multi-format capability (DVD +R and -R), whereas many others do not (Sharp, Samsung, others). Check carefully.
4) NetFlix now charges only $1 per month (not per disc) to send you the BluRay versions of all movies. Once you sign up for BluRay, all the movies in your Queue are automatically sent as BluRay, although you have the option (via drop-down menu) to request either BluRay, standard edition, or both. Netflix BluRay membership has worked very well, and is a great addition to a new BluRay player.