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I am in the market on this one. Anyone knows if it is a good deal ?

For a receiver that doesn't process HDMI audio? No.

Very few recievers process HDMI audio and the ones that do tend to be much more expensive

I'd pass on this one. You can pick up an Onkyo TX-SR606 for about the same money and get a better feature set.

Isn't the point of a reciever to process the audio?

Not Really #3 I got a Onkyo 705 for $399 which does audio through the HDMI cables and it's also THX certified. Just be patient and the deals will come.

It'll process audio over optical or coax, just not over the hdmi. Unless you really want your receiver to do video up-conversion, you can probably get something cheaper.

Yes Mistrblank, but the bandwith required to send the new surround codecs (HD and Master Audio) are larger then you can send over a coax cable. No HDMI audio pass through no new codecs. Also there is the added benefit of only using one cable for audio and video.

Most players will send the sound already processed. My ps3 sends already decoded HD and MA via PCM. You could send the signal bitstream and let the receivere process the siganal but you will get the same results. The receiver takes lesser siganls, like say Dolby EX or DTS and process it into a fake 7.1 surround sound.

The Yamaha HTR6140 and Pioneer VSX818 are receivers that process audio and video through HDMI. Additionally, the Pioneer upconverts all sources through HDMI. They are both around $250.

#8: You'd actually need to use analog even if your player decodes, if your receiver can't do HDMI audio. S/PDIF can only do DD, DTS or 2-channel PCM.

#10 what??? And I don't mean what are you saying, I mean how does that have anything to do with my post?

Because your post didn't make sense in context and made it sound like PCM is an acceptable workaround.

#9, you don't know what you're talking about, because the Pioneer VSX818 does NOT process the HDMI audio (Pass-thru only), and it also does NOT upconvert. Quit spreading wrong information when you don't know what you're talking about.

Quotes from the VSX818 manual:
"VSX-818V model only: To hear audio from your HDMI component through this system, make analog and/or digital connections as necessary.""Without this connection, HDMI audio will still be output from your TV or flat panel TV (though no sound will be heard from this receiver)."
AND
"The signals input from the analog (composite and component) video inputs of this unit will not be output from the HDMI OUT."

You need either the Denon AVR-789/AVR-1909 and higher to get sound over HDMI.

You need the Harmon Kardon AVR 254 or higher.

You need the Onkyo TX-SR606 or higher (or the TX-SR576 if your blu-ray player can decode to multichannel PCM over HDMI).

You need the Pioneer VSX-1018AH-K (or the VSX-918V-K if your blu-ray player can decode to multichannel PCM over HDMI).

You need the Sony STR-DG820 (or the STR-DG720 if your blu-ray player can decode to multichannel PCM over HDMI).

You need the Yamaha HTR-6160/RX-V663 (or the HTR-6140/RX-V463 and up if your blu-ray player can decode to multichannel PCM over HDMI).

I have the Denon AVR-3808CI and I am very happy with it.

I have the Onkyo TX-SR606 and I would recommend that over this one. The 606 has 4 HDMI inputs AND decodes all the new lossless HD Audio formats.