As you know, I'm trying to make a decision considering the best alternative between price and performance.

Is there a noticable difference for SD and HD content, which justifies the higher price of the BS3?

Crikes yes. The BeoSystem 3 is by a long looooong way the best picture processing on the market. You'll feel like you've got a new set of eyes.

Without a doubt, go for the BeoSystem 3.

The BeoSystem 3, as I said, is the best picture processing on the planet.

I'm surprised you can't see any difference, I'm constantly amazed how much better the picture is on the BeoVision 4/9 compared to other plasmas on the market.

Are you connecting the PS3 via HDMI or via standard definition? The BeoSystem 3 doesn't do as much to the signal if you use HDMI, wheras if you connect via scart, it'll do all the upscaling for you (definitely recommended). I can watch Star Wars on a BeoSystem 3 and swear I'm looking at high definition.

It's not just the upscaling which is impressive though - it's also the colour control and other picture processing which is going on - by far the most natural looking colours I've seen!

I switched from Beosystem 2 to Beosystem 3 and the difference in picture quality was impressive. It's not only the better picture quality and the digital video connections. BS 3 is an AV hub that provides many connections for video and audio devices. Actually it's the key device of your home entertainment system that gives you full control over Beo4. With IR connectors you'll be able to integrate third party devices like Apple TV and Playstation 3 flawless.  BS 3 seems unimposing but is a technically highly sophisticated key product by B&O. Software updates keeps Beosystem 3 compatible for future developments. 

It is a kind of unsung hero! The only trace you have of what it actually being there is that everything works properly, the picture is fantastic and the sound is fantastic.

Alex:

The BeoSystem 3, as I said, is the best picture processing on the planet.

 

Alex, if you have a chance, please check out this beast: http://www.anchorbaytech.com/products/systems/ 

 As a BS3 and JVC HD1 Full HD projector owner I gave it a testdrive (VPS50). This device is the benchmark (at least what a consumer is able to buy...) For example, the BS3 does some "extra" processing even to the full HD signals which result in a noticable  less perfect picture compared to a direct connection source to projector. The BS3 does two things which annoy me: 1st it ads extra sharpnes and 2nd the colour temprature is off the usual standards. Also the how the BS3 handels the deep black parts of the image is not perfect.

The upscaling from SD is good, but my Denon 3930 works at least on the same level. 

I don't mention the missing 24p support here as I hope that will be fixed this year.... 

So best picture processing on the planet? I doubt......

Karsten 

I actually like how the colour temp. is off the normal standards - it looks more natural to me. In fact I've never seen another TV on the market which can render flesh tones like a B&O, particularly the plasmas. That doesn't mean to say the other processors etc... on the market aren't very good - they are, and there are some very very good ones out there, but from what I've seen, the BeoSystem 3 produces the most natural picture with the most depth.

As for those iScan processors, can't say I've ever seen them. I'd like to though if you say they're better than the BeoSystem 3 - as far as I was concerned there wasn't anything.

What are the actual nuances of the picture processing.  I'm well aware of the quality scaling that the BS3 performs.  What else goes on?  Is there much noise/artifact processing?  I always hear that it does but it's always a vague reference.  Does it clean up much with HD compression artifacts?  

In regard to HDMI and upscaling.  I've currently got a Samsung Bluray player that I use also for standard DVDs with my BS1.  When my BS3 arrives later next week, would I be better off with an additional standard dvd player going through analog (component?) then having my Bluray output the standard DVD through HDMI?

I would get a standard definition DVD player, and connect it via Scart.

In terms of noise reduction etc... it does all of that. Noise reduction is part of the Vision Clear. It's also constantly adjusting the sharpness of the image to suite what's best for the incoming signal (as opposed to a fixed sharpness control which will only work for certain material).

The picture processing is obviously very very good indeed on the BeoSystem 2, but the 3 takes it to a whole new level!