guys, thank you all for your replies. It really helps!
I don't really cared about any video processing in a receiver either. Like Ckoffend said, it's just one more step for the signals to travel through and very possibly got degraded in the process. I will just connect all my video outputs to the monitor, be it a TV or a projecter. I am also not very sure what HDMI's benefit will be in this time. The standard is just unconvincing even with the 1.3 version.
And one more question, what's the difference between B&K 507 S1 and S2? Is this only a software upgrade or is there any hardware upgrade as well? I just couldn't find any info on their website.
Thank you all again!