I really don't want to spend a lot of cash, and I know there are a lot of amazing devices out there, but $350 is right around the max I want to spend.

Here is what I have to hook into it: (Video/Audio)

DirecTV HR20 HDDVR: HDMI / Optical
Playstation 3: HDML / Optical
XBox 360 w/HD-DVD: Component / Optical
Wii: Component / RCA
Panasonic DVD-R: Component / RCA
Toshiba VHS: RCA / RCA
Sony 8mm: S-Video / RCA

It is all going into my Toshiba 65HDX (couple years old Rear Projection... does not support 1080p, only 1080i). TV has 1 DVI, 2 Component, S-Video and RCA.

Now I know that if I want to do the 1 HDMI cable and upconvert it means that all of my Component 1080i devices get converted to 720p, which I don't think I want. Solution is to run both HDMI and Component and don't run the upconvert function. Only device I would be interested in upconverting is the Panasonic DVD-R, but it only gets used to pull recording off the DVR. PS3 and 360 are my standard DVD players.

My old Pioneer receiver does not have any component inputs (obviously no DVI or HDMI either). Also it is a 5.1 vs the Onkyo is a 7.1. The Onkyo supports all the HD sound option- TrueHD, etc. Hell my Pioneer doesn't have an onscreen config option.

Wondering what people thinking about the upgrade? Refurb is going for $350, figured I could maybe get $50-$75 for my current one that has served me VERY well for a long time, but I think it is time for an upgrade.

Thoughts?

you won't need to use the optical cables with the ps3 or dtv box. hdmi will handle the sound if you use the on board hdmi switching (which you should). you'll also be bale to get uncompressed pcm from the ps3 via hdmi.
you DO want to use the onkyo's video switching, by the way. use a hdmi>dvi cable and have it do the conversion.
it's true that the onkyo upconverts 480i/p to 720p, but it doesn't touch 1080i, so 1080i in, 1080i out.

I swore I saw that if you had a 1080i input over component it would down convert it to 720p. Now I know that over HDMI 1080i is 1080i, or whatever the resolution may be. I also know that component connections that are 480i/p are upconverted to 720p. Are you 100% sure on that 1080i is left alone over component?

I have a VERY nice DVI cable that has a good DVI-->HDMI adaptor on the end. Assuming I will use that cable to connect the TV to the receiver. the PS3 and DVR will go HDMI to HDMI on the receiver.

I am always leary of interfaces that do dual duty, but your saying HDMI audio is same or better then Optical right? Always assumed that splitting the load over two different interfaces would help.

Also I plan to get a few HDMI cables from Monoprice, they should work perfectly for the PS3 and DVR right? I know the whole Digital is Digital line, but there has to be some quality point. That said, are the stock cables that came with the DVR and PS3 worth using, or not?

Thanks SO much!

no, you are correct, component inputs at 1080i will be output at 720p.
Also, for the X-box (I assume that's the component in question) you should run it straight to the tv, as upconversion can give you a slight lag on games.
the thing about hdmi audio is that it has a higher bandwidth. this will make a huge difference in Blu-Ray playback via your ps3 as you can use uncompressed pcm soundtracks, which sound quite a bit better than standard dd and dts.
i think that hdmi audio sounds at least as good as digital coax, and in the case of BD and HDDVD, much better.
these days, it's the only way to go.

Can you disable upconvert on each component input or is it all or nothing? Thought maybe if I had HDMI-->TV + Component-->TV it would leave my 1080i alone on the component input for the 360. Reason i say that is I know the upconvert thing is really focused around pushing all video over HDMI to the TV- which I am willing to give up, and run 2 sets of cables.

Would be nice to see the DVD-R upconvert, and I know I could do it if I hook up the 360 directly to the TV for video. Would just be nice to have everything go though the receiver. Best solution would be to have the ability to disable upconvert on specific component inputs, but I assume since this is a lower model it is all or nothing.

Also do you think if i hooked my Wii into the receiver and it upconverted it would really affect response time- since the Wii is 480p.

Finally if i do have the upconvert disabled there should be no real lag if I just use the unit as a switcher right?

i don't think that component in component out does any upconversion at all (whether you want it or not).

What I was thinking was pushing my DVD-R and Wii (maybe) which connect over component out over the HDMI, which will convert the single to 720p. But with the Component in from the XBox 360, I want it to go out over the Component Out so that the 1080i single is not converted to 720p.

Does that make more sense? The upconvertion ONLY happens if you output the video though HDMI (and it comes from component, S-Video or RCA). See I want to specify that the DVD-R and Wii come in component and go out HDMI, but NOT the 360 (component to component there).

Just wasn't sure if it would do that.
I know the unit can do the input signals native resolution (whatever it may be- 480i, 480p, 720p, 1080i) out over component, but NOT HDMI. (which was a big selling point since it was just one cable that has to plug into the TV- which I don't really need or want if I lose resolution)

It says ont he display PCM. Is this the best audio? I am not sure what the difference is between PCM, Dolby etc. I would have expected a dolby sign or and HD sign to pop up on the display. Is PCM true HD? I have many Blu-Ray discs but can only get PCM... hopefully its configured correctly.

From what I understand all the audio decoding needs to be done on the device, and it then streams the PCM feed to the receiver. The PS3 does not allow the TrueHD feed to go across without it being first decoded and sent over PCM- assuming it will not be any different then that though.

The PCM I believe is as good as if the receiver did the TrueHD decoding. Only reason the light does not light up is because when it comes across as PCM the receiver does not get the typical "tag" that says it is TrueHD, but it is.