Does the Kona 2 offer full motion adaptive hardware HD uprez from an SD input? Will it properly convert a 480i 29.97 input to a 1080p 23.98 timeline, and would the results be superior to those achieved simply by dropping the SD file on the HD timeline and rendering? Will the quality be comparable to using something like a Terranex, etc.?
The one big thing the Terranex has is line doubling so especially for DV footage, the Terranex is always better. For BetaSP, DigiBeta footage, we've achieved incredibly clean upconverts via the Kona 2 and Kona 3. For DV, it's hit or miss, depends on the footage.
I would certainly try it first to see if you're happy with the results and if not, consider the Terranex.