I really can't offer any advice on the video quality side.
I will offer my $.02 that gaining the ability to play high-res audio sources such as SACD or DVD-A may be a worthwhile upgrade if you're into music. I do not own any DVD-A's, but I have several SACD's. The sound quality is fantastic.
You are correct. SACD and DVD-A media are connected via analog inputs, so the D/A conversion takes place in the player, not in the AVR/Preamp. Your preamp will do nothing to the audio signal but control the volume. Bass management is done in the player. I currently own and enjoy a Denon DVD-1920, but as soon as I buy an HDTV I'll be upgrading to an Oppo for the upconverting.
Last edited by PeterChenoweth; 04/09/07 07:41 PM.