First, digital TV and High Definition (HD) Television are two different things. The FCC has mandated that all TV broadcasts be digital by 2/17/2009. That is step one.
Digital television must be in place in order for High Definition TV to be broadcast. So all HD broadcasts are digital. But not all digital broadcasts are HD. You need special equipment to receive HDTV.
If you have a cable box (or satellite box) you should be all set. You will only have a problem if you are receiving over the air TV signals (via an antenna), or your cable TV wire goes directly into the back of your TV set.
If you rely on over the air (antenna) television, you will need to invest in a new TV that is digital. If you invest in digital, you may as well invest in a High Definition TV. A full HD TV means that the television has an "HD Tuner" in the TV. Don't be fooled by what is called an "HD Ready" Television. HD Ready TVs are digital, but don't have HD Tunes in them. HD Ready TVs require more equipment to get High Definition signals.
Once you have bought your HDTV and want to rely on over the air (antenna) signals, you may still do that. You must purchase a relatively inexpensive UHF/VHF Antenna, which cost anywhere from $30 to $70 for the indoor type (they have outdoor antennas as well which cost more but I have yet to see the benefit if you get a good indoor model). This is a one-time purchase and you will receive the clearest HD/digital picture available. This is because it goes directly from your antenna to your TV; a very short distance with no degradation in the signal. Note: If you have an old antenna, give it a try, it may work just fine if it can pick up both UHF and VHF.
Your last alternative for this configuration is what is called an "up-converter". The FCC (yes the government) plans to send out coupons or vouchers to everyone so that you can buy this type of device that will convert the digital signal to analog so that your old TV can read the new type of signal.
If your cable TV goes right into your TV with no cable box, you will need to get a cable box from your cable company, or use your government voucher to get an "up-converter" that will do the same thing. So if you want keep your old analog TV, you can, as long as you add a cable box or "up-converter" to translate the signal.
Ultimately, it is up to you what makes sense in terms of cost for you and your family (and you budget) but you do have to make some decisions and make sure that you are covered and won't stop receiving TV all toghether.
After all is said and done, most HD Channels today are not broadcasting real HD programming 100% of the time. Right now, the major networks are only broadcasting in HD during the national morning programs and Prime Time TV. Even during those hours you can not count on all broadcast being in HD (they will simply be in digital format). So don't be disappointed. As time goes on, more and more broadcasts will be in High Definition.
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