I finally decided to go for Bluray. I had previously heard the dramatic difference of Dolby/DTS HD sound decoding.... and decided that this Yamaha receiver was a reasonable but quality way to bring the latest processing to my otherwise separates based system. WOW! I have to say, this AV receiver as a preamp/processor does a great job-- sound quality in all modes, auto selection of audio formats, plus more than adequate connection options with selectable video upscaling. The user interface (GUI) [starting with this model on up] works effectively to guide you through setup and tweak it on the fly.
I am surprised with the sophisticated settings (which rival the Aragon Stage One it replaces). I blew off the automatic setup with the microphone. I prefer the purest, clean unfettered sound, so I used the manual settings, balanced all channels, dialed in the subs, and it kicks butt, driving my power amps from Aragon and PS Audio, for a full on 7.2 surround system with Klipsch speakers.
Technology marches on, and fortunately you can attain first class digital surround processing for well under a grand. I consider this piece a relative bargain. And I trust Yamaha's proprietary digital soundfield processing and their understanding of acoustics. ... A great musical instrument--- the RVX1065! Highly recommended.