This argument over where it is preferable to have the decoding done (source or audio processor) gets beat to death at AVS all the time. I’ve seen enough points from both sides to continue sitting with my but firmly planted on the fence. There is some evidence to support the processor group’s position, but I’m not sure if a human being could actually hear the difference, and that is in regards to PCM being sent over HDMI. It appears that it may be prone to jitter, but who knows if anyone could detect that??? At any rate, I don’t think anyone can make the claim that one way of decoding or the other is definitely better than the other.

I’m also not so sure about being limited to 5.1 PCM output from DTS-M or DD TruHD if decoded at the source. I have not seen anything concrete in that regards. Where is this sighted at a known fact?? I’d like to read that.

Regardless of all this conjecture, I believe that if someone either has, or plans to buy a HDMI 1.3 audio processor, they would be doing themselves an injustice by purchasing a source that will not output all the formats as bitstream. I am seeing a trend with the new HD and BR players to intentionally omit one format or the other, or both from internal decoding. I am also seeing a trend with BR and HD disks to include DTS-HD:M and / or DD TreHD, but not include a LPCM track. I think it is only a matter of time before the only format on the disks are DTS-HD:M and / or DD TruHD. It is for that reason that I bought the A35 and will most likely buy this new Panasonic BD30. They both output all the formats as bitstream.