HDMI 1.3 Audio Signal - Good Enough, or no?

I also recently bought an Arcam AVR 350

Mine will be used only as my HT setup - BLu Ray
I'm using a PS3 now, but will buy a Pioneer BDF05 (May release) which will output 7 discrete analog outputs with dac converters. THe new $2k Denon will do this also.

THe Arcam is a beautiful sounding unit, well above the mass marketed hdmi receivers. I'm using a Pioneer plasma and will send the BLu Ray video direct to the plasma and audio via analog outputs to the Arcam

you may be able to do your HD receiver with toslink

Arcam felt the hdmi inputs compromised the sound quality

I've heard there are major problems getting the hdmi 1.3 chips
http://www.avrevforum.com/showthread.php?t=1377

Thanks to all, I think. ;) Keep in mind that this is not intended to be a vote for any "person". I was not taking a position either way but was, rather, seeking opinion, not setting up an argumentative scenario - unless one wants to "argue" with Arcam. I have been into high-end audio for decades but have only dabbled in HT. Personally, I think anything more than mid-fi is a real waste for movies and I am not sure that surround sound is how concerts "should" be reproduced (since it ain't surround sound or ultra high resolution at the venue). I will agree, however, that it may enhance the in-hime experience.

But, the DVD videos, and to a somewhat lesser but growing extent, concerts are improtant to my wife, I am trying to provide the best reproduction possible without going over board.

4yank -

I'm in a similar boat as I'm mostly doing the ht room to watch movies (dvd and blue ray) and will probably hook up satelitte (I'll switch from dish network which has less HD content).
I'm hoping the newest 7.1 / 5.1 analog out high end blu ray players have a stellar SD DVD upsample section.

my old main system 2 channel ht seemed good enough
but was ready and willing to play with multi
the Arcam had a pleasing analog element even if it doesn't have the latest hdmi elements

tom

I hear thee, AT! I have a Zentih DVB318 with the firmware that allows upsampling to 1080i over component, and now I will be looking toward a Blue-Ray player as a replacement, as well.

I set up an Onkyo/OPPO Digital system for someone a few months back. The Oppo/Onkyo combo did pass SACD/DVD Audio over HDMI...from one, to the other. It sounded pretty darn good.

NHT Classic speaker, front and rear.

Dave