Ananth,
Not stupid at all. If the signal is already analog when it reaches the receiver it is simply passed through directly to the (analog) amplifier stage, or seperate power amp. There is no need for it to be re-digitized at all. The receiver, in this case is simply acting as a conduit for the signals. To answer your other question, I do not have a 2900 but it is my understanding that the Silicon Image de-iterlacer provides a smoother picture while the Faroudjer chip is sharper. To my eyes the 2910 over DVI at 720P looks superb.
Stuart
