Now I am not sure how the radions stack up, but using these settings on my 9800GT made my video quality noticeably worse than normal. Especially around text (white over black background was painful) where noise was added. After messing with it a little I found that using the video defaults under the image settings was best. And checking the dynamic contrast under color settings helped the contrast a little, but not much, and I think it is adding noise, so I am going back to defaults on this as well.
More important than your driver would be calibrating your monitor. PC monitors are very different than HDTVs (higher brightness and lower contrast, square pix to optimize text over video, and most of us have tn screens which are very limited on color range), but in spite of their shortcomings, if properly adjusted they can still look quite good.
A note to those who are putting your DVDs on your computer, there is a very powerful program called AVS which can do much of this cleanup for you during the ripping process. This allows for smaller file size with good compressors (h264 for storage, Lagarith for editing), as well as making upscaling less of a problem. It is not a particularly intuitive tool, but there are many good tutorials out there on it. This is especially handy with old DVDs that were not encoded well in the first place, or super long DVDs (lord of the rings) where it was encoded poorly in order to fit the content on the disc.
As for blue-Ray content, the quality you get will depend mostly on the software you are using. The driver options (at least for my card) hinder more than help, so it then depends on the software you are using.
For HD content in general you will notice a huge difference between that nicely encoded music video you download vs Netflix HD streaming. Part of this is because Netflix is (for the most part) only 720p, and 2ndly because they have an automated process which will work better for some movies than others. It would seem their biggest flaw is color banding. This is still worlds better than cable, and other web services, but you are just not going to get that BD quality.