I've been looking to finally jump on the Blu-Ray bandwagon, now that there seems to be a winner in the war. I'm also excited about the new audio formats being released (Dolby TrueHD, DTS HD Master Audio, etc.) that will finally give us uncompressed multi-channel audio in 7.1. Problem is, there doesn't seem to be a single player out there that will decode those formats within the player and output them as LPCM to a non-HDMI 1.3 receiver. Since I have a pretty new Denon AVR 4306, I'm not interested in buying a new receiver just for those decoders.
As I understand it, NONE of the BD players on the market at this time (even the pricey Denons) do internal decoding of these codecs; they just bitstream them out via HDMI and must be decoded in a receiver or pre/pro with the proper decoders.
Also, as I understand it, a receiver with HDMI 1.1 will take this bitstream and just convert it to the "core" DTS or DD formats. I don't really have a problem with DTS and DD, but if I'm going to pop for the new stuff, I certainly want to experience the new audio formats at the same time.

If I'm wrong about this, someone with the facts please set me straight.