Blackorp, lets be sure we are clear on something. First, it is my opinion that connecting HDMI or DVI outputs in your source (DVD player and/or cable or Sat box) to HDMI or DVI inputs on your HDTV results in slightly superior picture quality than connecting them via component, and considerably superior picture quality than connecting them via S-Video, or composite. BUT, you don't have to go through your receiver in order to achieve HDMI connections.
I have 3 sources with DVI outputs. I connect them directly to the one DVI input on my HDTV by going through a stand alone DVI switch with 4 inputs and 1 output. If you get a receiver with HDMI switching, then it will serve the same function as my stand alone DVI switch. Although, most receivers I've seen have only 2 HDMI inputs which would suffice if you only have a DVD player and cable/Sat box.
Either way, it will cost you money. If you do it the way I do, you save money because you can get a less expensive receiver without HDMI switching. BUT, you have to buy a switch. So it sort of balances out.
An alternative is to skip the switching, either in the receiver, or with a stand alone switch, and use the HDMI input on your HDTV for your cable/sat box to take advantage of high definition, and use a component connection for your DVD player. Currently, DVD players are not high definition. When the hi def players do hit the market and their prices finally come down to a reasonable level, you can add a switch if you are so inclined.
The point is you do NOT have to feed your video through the receiver in order to utilize the HDMI/DVI inputs and outputs of your equipment.
