Well the Directv TiVos don't need to encode the satillite signal at all, it's a digital signal so it just goes straigh to disk. So image quality will be as good or bad as it is now.
Upgrading is pretty straight forward.
There is a subscription fee "Subscribe to DIRECTV® DVR with TiVo® service for $4.99/mo, or enjoy it FREE as a TOTAL CHOICE® PREMIER customer." But if you pay enough allready they give it to you for free.
My father-in-law picked up two Directv TiVo's at Best Buy recently for $79 each, I believe they were Panisonics, though I'm pretty sure they are all the same inside.