1. HDMI is just a connection, it does not upscale by itself. Aisip is right, though, that most new receivers have upscaler functions. I just need to clarify that HDMI and upscalers are separate entities.
2. If your player does have HDMI out to your receiver's HDMI in, that should give you 5.1/7.1.
3. Yes. So you need 2 HDMI cables. Player --> Receiver --> TV.
2. If your player does have HDMI out to your receiver's HDMI in, that should give you 5.1/7.1.
3. Yes. So you need 2 HDMI cables. Player --> Receiver --> TV.