Yes, upscaling is the main diff. with the 2600, there are a few other minor things that it has that the 1600 doesn't, but mainly upscaling is what you are paying extra for. If your input into the receiver is HDMI, then the receiver won't upscale it, it will just pass it through, if your input is anything other than HDMI, the receiver will upscale it if necessary. I have the 1600 and it does a great job of deinterlacing and upconverting to HDMI, the scaler in my Samsung DLP does a pretty good job, I'm glad I didn't spend the extra money on the 2600.