The setup is correct. Everyone seems to expect that HD is somehow awe inspiring, but many times it is not. I've heard people say that HD is so awesome that you'll watch the weather channel in HD all day just because the picture is so beautiful. I say baloney.
Well, I don't really know what to say here -- I agree with some of what you say regarding HD being a bit hyped up more than reality, but many cable HD transmissions are beautiful compared to standard transmission...be that as it may, I have heard the same thing that HD is so awesome that it is better than anything standard DVDs, cable, etc, can deliver -- no matter what the source, and I'm beginning to think this is a bunch of black smoke...
But you are confirming that my HDMI setup is correct?
Just because you have a blu-ray doesn't mean that it was mastered to the utmost in quality standards or even that it will be a huge difference from SD. Sometimes it is and sometimes it is not, it depends on the source from which it was mastered and the skill of the mastering engineers. Just like music, it is sometimes hit and miss.
Okay...this is more in line of what I wanted to know...
Despite all the hype, HD is an incremental improvement at best. With cable, sometimes a HD version and a SD version are available at the same time on different channels. Sometimes I fail to see any major difference at all.
You know though, there are certain Blu-ray discs, HD cable transmissions (mainly sports) and TVs, settings, cables, etc. that just make the experience REALLY look good -- while I'm not impressed with my setup's performance, I can walk into Blockbuster or Sears and see a Sony BRAVIA LCD they're running and it looks like Johnny Depp is literally floating off the screen in 1080p delivery of Pirates of the Caribbean...the depth, the pop, the colors...absolutely jaw dropping...the same disc on my screen doesn't quite have that "high def pop"...
But you know what concerns me? I'm hearing everything from so many different people -- some say my receiver shouldn't be causing ANY loss of information video wise...some say my Onkyo's video quality sucks...some say my TV may not be delivering HD quality picture...I don't know what to believe, but I will work on getting back to some other people who voiced these opinions in here...