Thank for the advice guys.

The 2808 can be had here in Japan for about 76,650 Yen (roughly USD$713). A couple days ago the price actually dropped to around USD$630, but I was still on the fence and lost out on the chance to get it. \:\(

Like terzaghi, I use the PS3 as my blu-ray player so I guess most of the encoding will be done in the player. I just set up the PS3 recently so I haven't gotten around to setting up all the settings and stuff yet (but that's a totally different topic).

The 2808 supports most of the HD audio formats...at least the ones I expect to be using on the PS3. And reading the older posts, Denons seem to have the reputation of matching Axioms.

More or less those are the reasons that I'm looking at the 2808.
It doesn't have the GUI the 3808 has, but its significantly cheaper. It doesn't have DLNA support, but the PS3 can handle that so it's a nil issue for me.

Are there any other receivers that I should look at before I pull the trigger?