I have two questions. I was hoping someone could help or direct me to an article or forum that could help. Thanks in advance.

I'm slowly upgrading my equipment at home. I just grabbed a used PS3 but realize it won't decode the HD Audio codecs. My question is if I grab a Toshiba HDA20 or A35, do I still need an AV receiver that has HDMI 1.3?

Or, since the HD DVD player is supposed to decode those signals, will a plain old toslink optical cable from DVD to an older receiver, like the Denon 3805 (I'm hoping to grab a used one locally at what I think is a great price) successfully transmit the lossless sound?

The second question is more general, and may be best answered by reference to an online article. What are the advantages or drawbacks of routing video signals through an AV receiver, rather than directly to the television?

Thanks again.