You admitted you are pretty new to audio, so you won't be surprised to find you are a bit off on a few things.
HDMI 1.3 is a specification for the interface capability. HDMI 1.1 can carry multichannel LPCM, HDMI 1.2 can carry multichannel LPCM as well as DSD streams (sacd), and HDMI 1.3 can carry multichannel LPCM, DSD streams, and the new surround format bitstreams (Dolby Digital Plus, TrueHD, and DTS-HD). HDMI 1.3 can also support deep color on the video side.
The Onkyo TX-SR505 I linked above has HDMI 1.3, but it does not process audio for example. At the same time the TX-SR605, also has HDMI 1.3, can process audio.
Then as described before there is the repeating feature, which allows a receiver to decode information off of the HDMI transmission, but is limited to the HDMI spec it uses (1.1, 1.2, 1.3).