I'm just going to say that the Sherwood is a POS and those receivers which don't process ANY audio on the HDMI inputs are equally POS worthy products.
There is no call for any manufacturer to not make it 100% clear that their AUDIO/video receiver does not actually handle AUDIO over a audio input cable which the receiver supports.
There are several different versions of 'switching' which are used to describe this lack of feature within an A/V receiver and even I'm confused as to which one specifically says "This receiver can't process audio over HDMI, so you must make an additional audio connection from HDMI video sources if you want the receiver to reproduce audio."
See, now that sentence I understood, but it seems like that is buried on instruction manauals (Page 38, at the bottom).
I understand not only how this could frustrate someone, but how they could read "A/V receiver - SUPPORTS HDMI SWITCHING!" as a 'feature' integral to a audio receiver, which means that audio recevier switches to that HDMI cable, and process the audio just as it switches RCA audio, Coax audio, and optical audio.
When a standard supported feature (audio on HDMI) is not supported, I am in full agreement that manufacturers are skirting the edge of terminology to make their lack of audio processing over HDMI perfectly clear to consumers and are, in fact, using the lack of knowledge of consumers to sell them a product which fails to deliver what is expected on a regular basis.
Kudos! I agree, POS product. Hopefully more people will make it clear that these types of products should not be supported, or delivered to consumers without far more clearly stated specifications.