Question about upscalling

[sonnyworld85]

I have a Sony BDP-S350 and whenever I play DVD's, I see lot of grain in the picture. The Blu-ray player suppose to upscale DVD's to 1080p...shouldn't that eliminate some of the grain? It's not even just the acceptable amount of grain...but there is a very noticeable amount of grain which sort of deters me from viewing the movie. Especially the 'Adaptation' DVD which is a Superbit DVD. I don't see this amount of grain when I view the movie from a DVD player, but once I put it in my blu-ray player, the grain is much more noticeable. Any thoughts??
thank you