<a href="http://www.accessories4less.com/cgi-bin/item/ONKTXSR705">Clicky</a>

My Sony receiver is getting a bit old and I've run out of video input ports on my TV. Browsed around for a bit and this looks to fit the bill and what I'm looking for...video switching/upconversion, more than 2 HDMI input ports, single output to TV, etc.

Any bad things to say about the Onkyo?

From what I can gather.
Those things aside, great value product with fine features.

Biggest issue otherwise is it appears to be out of stock : )

By handshake issue, you mean sometimes it won't process the signal and need to cycle the power and try again?

The out of stock thing is annoying, every time I look, it is out of stock :(

The silver version has low stock usually. But not a bad idea seeing my DVD player is silver, comcast box is silver. But TV, speakers are black. Hmmmm.

video upscaling capabilities are mediocre at best and I don't like how it downconverts 1080i to 720p via HDMI so I set it to pass-through. Sound quality is very good. I have the latest firmware in my unit so I have not experienced the early problems people have posted on other forums, and no hdmi handshaking issues with ps3, directv hr20, and imac extended display dvi-hdmi, all via hdmi. You simply can't get a better overall package with 7.1 and hdmi 1.3 at this price range, except maybe the 605 model which I've seen online for under $400.

If I had to do it again, I would've gone for a Pioneer Elite VSX-92TXH which I found for $799 from a small local authorized pioneer retailer. But I believe the 705 can be found for $500 if you look hard enough. Can't beat that.

audio, correct? I'll have to connect a separate audio source to the receiver, right?

aka as by-passing the processor.

HDMI carries audio and video, but you can over-ride the audio with an analog feed if you prefer, so long as your source has an analog output (most do).

The main reason you might use a separate analog audio feed is if your receiver has no decoder for HD-audio, but your BluRay or HD-DVD player does.
Or it could just be that the decoder inside your player is better than the one inside your reciever. It happens, but usually only with the higher-end players (upwards of $500).

xbox is just component cables.

I guess I'll play around with both and see how I feel about it.

Now to find it for under $500 as Larry suggested =P

This board convinced me to not count the 875 out against the Denon 3808 yet!