In my experience, finding an affordable, used processor that will pass HDMI, upconvert/upscale analog video, and decode high-def audio formats is a myth for under $900 or so. I didn't want a processor that did not have HDMI 1.3; I don't want to buy the ICs going from my blu-ray player's pre-outs to the processor, then from the processor to the amp.
Before I broke down and bought my Denon 3310, I was crawling the internet looking for the most affordable unit that would decode high-definition audio through HDMI and had at least 5.1 pre-outs. I found the Yamaha RX-V665, it has 7.2 channel pre-outs and it is $549. I seriously considered buying a 5 channel amp from another Agon'r (Emotiva Audio UPA-5 for $500 today looks good) and mating it up with the Yami. It has an on-screen GUI, room correction, it upscales and upconverts analog video to HDMI 1080p. In the end I decided to go with the Denon, mostly b/c I was a bit concerned about the Yami's proprietary room correction, and the Denon had some features I wanted, like the internal HD radio tuner. For the same price (+/- $1000), I am sure the Yami/Emotiva combo would sound better than the Denon I bought, better amplification. My Denon does not impress for 2-channel listening, and I am on the hunt for a 2-channel amp for the fronts.
Don't forget about the ICs to the amp in a HT system - entry level Audioquest @1m would have cost $140, not including the sub cable, for my 5.1 system.
Before I broke down and bought my Denon 3310, I was crawling the internet looking for the most affordable unit that would decode high-definition audio through HDMI and had at least 5.1 pre-outs. I found the Yamaha RX-V665, it has 7.2 channel pre-outs and it is $549. I seriously considered buying a 5 channel amp from another Agon'r (Emotiva Audio UPA-5 for $500 today looks good) and mating it up with the Yami. It has an on-screen GUI, room correction, it upscales and upconverts analog video to HDMI 1080p. In the end I decided to go with the Denon, mostly b/c I was a bit concerned about the Yami's proprietary room correction, and the Denon had some features I wanted, like the internal HD radio tuner. For the same price (+/- $1000), I am sure the Yami/Emotiva combo would sound better than the Denon I bought, better amplification. My Denon does not impress for 2-channel listening, and I am on the hunt for a 2-channel amp for the fronts.
Don't forget about the ICs to the amp in a HT system - entry level Audioquest @1m would have cost $140, not including the sub cable, for my 5.1 system.