Yes, you would get the local channels in HD. Coincidently, I would attempt to add the digital classic on top of that. So your package would look like
Basic Cable (local)
DVR
Digital Classic (you can add it without getting expanded service)
I recommend this if you want to get ESPN in HD, as well, though really, if you ask most of the agents don't know if you'd be able to or not. In any case, I'd recommend trying it out and getting rid of the classic package if you don't get it or like it. You'd be looking anywhere from about 30-35 dollars depending on the FRC's and price of local service.