HD Media player

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Crankshaft

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Please advise:

My old LG DVD player won't play AVI files from it's USB port.

Options: 

1.  Get a bluray player with USB that can play MKV files / get a Media player like the WD TV Live.
Both around R1000.

2.  Find a cheapie USB media player (less than R500) that has the ability to output HD content via component video.

The component video requirement is important, as my Sony HD CRT TV does not have DVI or HDMI.
I've heard that not all bluray / media players will output HD over component - due to copyright controls.

Any help will be appreciated.
 
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