Would recommend some reading on http://www.dtv.gov/

From their FAQ:
If I have an older analog television, will I have to throw it away after February 17, 2009?

No. A digital-to-analog converter box will allow you to continue using your existing analog TV to watch over-the-air digital broadcasts. You do not need to get rid of your existing analog TV. In addition, analog sets should continue to work as before if connected to a subscription service such as cable or satellite TV. Also, analog sets should continue to work with gaming consoles, VCRs, DVD players, and similar products that you use now.   



In most cases, I think you can continue using your same TV, you just may need a new box to hook into it.

Basically there won't be any more hooking your TV up to an antenna to watch TV.  Although I think that was pretty much just ABC, CBS, NBC, FOX, and PBS.  Earlier this year, they auctioned off the airspace for which those channels had been using (and are using until February).  AT&T and Verizon in particular bought some of the frequencies, which will be good for cell phone coverage.

Additionally, the rearrangement of airwaves in the USA means that basically ALL over the air television will be in the UHF range (no more VHF) and older TVs will require a decoder to use with an antenna. The shorter sections of older antenna or the tabletop loop types made for UHF will be used for the new digital transmissions. Another problem with the new frequencies used  means they are more dependent on line of sight. VHF transmissions curved slightly with the earth, much more than the UHF.

Go to the DTV website mentioned and request a government sponsored coupon. With it, you can get a decoder for just the shipping from several vendors.

Also CAUTION is needed PRIOR to purchasing ANY wireless mics or IEMs, new or used, to avoid the banned channels ;>(

Boomerweps

Ok, I've been through 3 separate waves of Barney in my household,
and getting it 24x7 would Not be a good thing.   

Hopefully, by the time I am spending time with grand children - God willing -
Barney will be good dead and buried.   

Barney on wave 1 is ok.
Barney on wave 2 is barely tolerable.
Barney on wave 3 is - slow, steady, TV torture.   

Smoggy, don't feel bad about having older tv's. We've got 4 that we have to update. I gave up cable TV when we moved and haven't missed it. Especially the cost of having it. It was great for movies, but I can borrow many of them from my daughter for nothing. If I want a special show they'll record it for me. My Mom only has one TV, so I'll get a third converter from her. It's rather weird how the government got involved with the media. 

Your grandson is right. SpongeBob rules! My daughter and I love it.  If you watch the "Band Geeks" episode about Squidward getting a band together - you will crack up, gauranteed - unless you were in a band and take the "band humor" personal.  The final scene with Patrick on the e-drums is classic. 

Regarding the switch to digital.... Like everything else, this change is inevitable.  You may have also heard about the recent auction of frequencies being made available by this switch. The freed up band width will be used to offer a bunch new wireless services.  I think we'll be able to charge our batteries over the airwaves