I don’t know all the BR quirks, but I did read somewhere a while back that some of them do not support lossless audio. This was one reason I use a PS3 for BR playback. It supports L-PCM via HDMI. But be careful with your terminology. Bitstream is a compressed format. L-PCM is not. Only HDMI 1.3 devices can pass the DD-HD and DTS-M audio streams, with is basically a bumped up bitstream file that the receiver will then process.
When I went from a Pany 900 to the Pany 1000 I did not notice a considerable difference in regards to resolution unless I stand less than three feet away from the screen. Where I noticed a significant (for the better) difference was with Contrast, Color, Blacks and Sharpness. For example; the HD/DVD version of the Mummy II has a dark scene where they are all traveling in the balloon with a dark scene with starts in the background, close up facial shots and a very colorful balloon. Watching this on the new projector just slams the senses because you can clearly see everything. Even all the shadow detail whereas with the 900, some was there, but much detail was lost.
It’s that way with all movies I watch now. I’m constantly thinking “dam that looks good” almost to a point of distraction.
I think that you will be very happy with the Z5 seeing how this is your first projector. But if you really want some eye candy, consider the Pany 1000 or Epson 1080P units. They are both about the same price. The Epson has more lumens whereas the Pany has a more film like image and is quieter. They both come with a three year warranty as well.
Again, read the reviews at projector review. There are a couple very good reviews comparing all the new projectors.
