I am curious, does HDMI DVD player only upscale on DVD movies? How about VCD movies?

Just bought Philips DVP5986 for RM499, I was aiming for Sony NS76H which has been reduced to RM499 as well, but I couldn't find it at my local stores, so I settled with Philips player, I hope I won't regret lah...hehe

Anyway, The player play DVD-R movies flawlessly, it also come with a free HDMI cable so I guess it worth the price I paid. The picture is a big improvement over my old DVD player on Sony V300 46' LCD, the colour is rich, upscale capability is good at 720p and 1080i on my LCD.