I jumped in with a 1080p TV and DishNet HD. An upgrade to my DVD player with an upconvert to 1080i makes all my current DVDs look fine. I'll wait until the format fight is over and the player prices drop to a reasonable level. My local stores are carrying titles in BluRay and HD-DVD, but I don't see much evidence of turnover of the stock on the shelf. It doesn't help that the store only sells 720p/1080i TV and sells no players for HD-DVD or BluRay. That stuff is available at Circuit City...50 miles north.
When BluRay hits around $299 at Walmart, I'll consider the technology as mainstream.
You don’t have long to wait - Sony’s first-to-market BluRay player, which premiered at $999, is now $799, and they’ve added a low-end unit that’s selling for $499 at Circuit City, which is the lowest price among the competing BluRay units.