Video upconversion explained
There is some confusion on previous posts as to the upcoversion and scaling features on new receivers.
First, many mid and high end receivers claim to have "video upconversion". This means that the receiver can take a lower resolution input (composite, s-video, etc.) and "convert" the signal for output in a higher quality format (component video, DVI, HDMI, etc.) Most receivers that "upconvert" to component video or HDMI will output the signal at a 480i resolution.
Second, the new Yamahas are the first receivers with an "upscalling" feature which is also found in some higher end DVD players. In this case, the video processor takes a 480i signal (DVD, etc.) and upscales it to the native resolution of your HDTV (720P or 1080i). The Pioneer does not have this feature.
The only real benefit to "video upconversion" is that you user has a single video connection from the receiver to the TV.
User's will only benefit from "upscalling":
IF they have a new HDTV capable of 720p, 1080i, or 1080p resolution.
AND the upscaller in the yamaha performs better than the one internal to their HDTV.
As one poster reported, he was able to see no benefit by connecting a upscalling DVD to his set. This would not be the case of most lower end Plasmas, LCDs, Front/Rear Projecton TVs.
Finally, a significant price differential in the Yamaha RX-V2500 ($800) and the new model makes the HDMI switching a very expensive feature. Users with only 1 HDMI source could connect directly to the TV or an external switchbox could be added in the future if necessary.