Haven't tried it, but I have also heard some impressive results from the home theatre crowd with upconverting. That said, the up-conversion process needed to produce really good results uses expensive, specialized chipsets and algorithms. I don't know that simply upconverting the video in your editor is going to produce the same results.
Then there's two other things to consider. First, it may look better than DVD, but there's just simply no way to insert material that was not there in the first place. Sometimes you get lucky and it looks better, other times you don't. And second, you still have to consider your output destination. Unless you have access to Blue-Ray or HDDVD players, you are still most likely outputting to DVD. In that case, you would spend time and effort up-converting to HD only to go and downconvert it back to DVD resolution. I have to think that would not produce the results you're looking for.
So unless you are preparing your video for a one-time showing, in a location guaranteed to have either a very good quality upconversion DVD player (which does the upconverting for you) or a high-def player, only the latter could *possibly* justify the upconversion process. Else you'd be better off going to DVD as usual and letting the really good upconversion players do their job.