I am obviously going to stick with the PCM output especially as there is no real difference in SQ, the sync issue is just too annoying to deal with. I did a little more research and it appears the newer Denon's are receiveing better support and the sync issues are virtually non existant(had to search prettyy hard to find anything) other than with the initial release of whatever movie is causing a problem or poor cable boxes, for some reason(I would suspect the almighty dollar) Denon is leaving us 3808 owner's out in the cold when it comes to proper updates.
