I have a pretty cheap Sony Receiver I purchased a couple of years ago running with my current axiom setup. In the areas I care most about sound (HD-DVD and DVD audio)I am running the sound via the multi channel analog cables.

Does my receiver have any bearing on the sound or does it just pass it thorugh? I have been considering upgrading my receiver this summer with the Sherwood HDMI 1.3 receiver, but will it have any effect on the sound quality I have currently if it doesn't process the sound? Would I be better off getting a HDMI 1.1 receiver that can carry the HD audio signal that my HD-DVD player decodes?

I'm looking for any ideas, because if getting an upgraded receiver wouldn't have much of an affect I can put tat money towards teh new sub that I need and the new TV that I want.

Any input would be appreciated.